CSCENIC.KL
Classic Scenic Bhd
Price:  
0.45 
MYR
Volume:  
292,800.00
Malaysia | Paper & Forest Products
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CSCENIC.KL WACC - Weighted Average Cost of Capital

The WACC of Classic Scenic Bhd (CSCENIC.KL) is 6.7%.

The Cost of Equity of Classic Scenic Bhd (CSCENIC.KL) is 9.50%.
The Cost of Debt of Classic Scenic Bhd (CSCENIC.KL) is 5.00%.

Range Selected
Cost of equity 8.10% - 10.90% 9.50%
Tax rate 21.50% - 24.90% 23.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 7.3% 6.7%
WACC

CSCENIC.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.63 0.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.90%
Tax rate 21.50% 24.90%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 7.3%
Selected WACC 6.7%

CSCENIC.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 CSCENIC.KL:

cost_of_equity (9.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.63) + 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.