CHINWEL.KL WACC - Weighted Average Cost of Capital

The WACC of Chin Well Holdings Bhd (CHINWEL.KL) is 10.3%.

The Cost of Equity of Chin Well Holdings Bhd (CHINWEL.KL) is 10.30%.

The Cost of Debt of Chin Well Holdings Bhd (CHINWEL.KL) is 4.45%.

	Range	Selected
Cost of equity	8.70% - 11.90%	10.30%
Tax rate	22.50% - 23.90%	23.20%
Cost of debt	4.40% - 4.50%	4.45%
WACC	8.7% - 11.8%	10.3%

WACC

CHINWEL.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.72	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.90%

Tax rate	22.50%	23.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.40%	4.50%

After-tax WACC	8.7%	11.8%


Selected WACC	10.3%

CHINWEL.KL's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CHINWEL.KL:

cost_of_equity (10.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.72) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.