COMPUGT.KL WACC - Weighted Average Cost of Capital

The WACC of Compugates Holdings Bhd (COMPUGT.KL) is 7.9%.

The Cost of Equity of Compugates Holdings Bhd (COMPUGT.KL) is 9.15%.

The Cost of Debt of Compugates Holdings Bhd (COMPUGT.KL) is 6.70%.

	Range	Selected
Cost of equity	7.60% - 10.70%	9.15%
Tax rate	0.60% - 0.70%	0.65%
Cost of debt	6.40% - 7.00%	6.70%
WACC	7.0% - 8.8%	7.9%

WACC

COMPUGT.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.56	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.70%

Tax rate	0.60%	0.70%
Debt/Equity ratio	1	1
Cost of debt	6.40%	7.00%

After-tax WACC	7.0%	8.8%


Selected WACC	7.9%

COMPUGT.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 COMPUGT.KL:

cost_of_equity (9.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.56) + 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.