CYPARK.KL WACC - Weighted Average Cost of Capital
The WACC of Cypark Resources Bhd (CYPARK.KL) is 10.6%.
| Range | Selected | |
| Cost of equity | 7.8% - 12.6% | 10.2% |
| Tax rate | 22.8% - 24.7% | 23.75% |
| Cost of debt | 7.6% - 20.8% | 14.2% |
| WACC | 6.4% - 14.7% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.58 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 12.6% |
| Tax rate | 22.8% | 24.7% |
| Debt/Equity ratio | 2.35 | 2.35 |
| Cost of debt | 7.6% | 20.8% |
| After-tax WACC | 6.4% | 14.7% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CYPARK.KL | Cypark Resources Bhd | 2.35 | 1.24 | 0.44 |
| 436.HK | New Universe Environmental Group Ltd | 0.26 | 0.71 | 0.59 |
| 5CT.SI | Ecowise Holdings Ltd | 0.35 | -0.77 | -0.61 |
| 8309.HK | Man Shing Global Holdings Ltd | 1.03 | 0.27 | 0.15 |
| 8383.HK | Linocraft Holdings Ltd | 6.97 | 0.19 | 0.03 |
| BTECH.KL | Brite Tech Bhd | 0.89 | 0.5 | 0.3 |
| DBHD.KL | Damansara Holdings Bhd | 0.22 | -0.41 | -0.35 |
| HHHCORP.KL | Hiap Huat Holdings Bhd | 4.4 | 0.47 | 0.11 |
| JAG.KL | JAG Bhd | 0.4 | 1.07 | 0.82 |
| TEXCYCL.KL | Tex Cycle Technology (M) Bhd | 0.11 | 0.64 | 0.59 |
| Low | High | |
| Unlevered beta | 0.14 | 0.35 |
| Relevered beta | 0.37 | 1 |
| Adjusted relevered beta | 0.58 | 1 |
CYPARK.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 CYPARK.KL:
cost_of_equity (10.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.58) + 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.