CRG.KL WACC - Weighted Average Cost of Capital
The WACC of CRG Incorporated Sdn Bhd (CRG.KL) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.5% | 10.15% |
| Tax rate | 35.6% - 45.5% | 40.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.9% - 10.3% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.73 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.5% |
| Tax rate | 35.6% | 45.5% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.9% | 10.3% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRG.KL | CRG Incorporated Sdn Bhd | 0.16 | 1.05 | 0.97 |
| 1470.HK | Prosper One International Holdings Company Ltd | 0.03 | 1.14 | 1.12 |
| BGT.BK | BGT Corporation PCL | 2.14 | 1.16 | 0.53 |
| BONIA.KL | Bonia Corporation Bhd | 0.7 | 0.26 | 0.19 |
| BTNC.BK | Boutique Newcity PCL | 0.13 | 1.27 | 1.18 |
| KAMDAR.KL | Kamdar Group (M) Bhd | 0.98 | -0.14 | -0.09 |
| KHJB.KL | Kim Hin Joo (Malaysia) Bhd | 0.18 | 0.03 | 0.03 |
| MESB.KL | Mesb Bhd | 0.06 | 0.19 | 0.18 |
| PADINI.KL | Padini Holdings Berhad | 0.26 | 0.21 | 0.18 |
| TGL.KL | Teo Guan Lee Corporation Bhd | 0.14 | 0.63 | 0.58 |
| Low | High | |
| Unlevered beta | 0.19 | 0.55 |
| Relevered beta | 0.6 | 0.79 |
| Adjusted relevered beta | 0.73 | 0.86 |
CRG.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 CRG.KL:
cost_of_equity (10.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.73) + 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.