COMFORT.KL
Comfort Gloves Bhd
Price:  
0.35 
MYR
Volume:  
301,000.00
Malaysia | Chemicals
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COMFORT.KL WACC - Weighted Average Cost of Capital

The WACC of Comfort Gloves Bhd (COMFORT.KL) is 7.9%.

The Cost of Equity of Comfort Gloves Bhd (COMFORT.KL) is 8.80%.
The Cost of Debt of Comfort Gloves Bhd (COMFORT.KL) is 5.50%.

Range Selected
Cost of equity 7.00% - 10.60% 8.80%
Tax rate 22.50% - 23.00% 22.75%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.2% - 9.5% 7.9%
WACC

COMFORT.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.47 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.60%
Tax rate 22.50% 23.00%
Debt/Equity ratio 0.26 0.26
Cost of debt 4.00% 7.00%
After-tax WACC 6.2% 9.5%
Selected WACC 7.9%

COMFORT.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 COMFORT.KL:

cost_of_equity (8.80%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.47) + 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.