CYPARK.KL WACC - Weighted Average Cost of Capital

The WACC of Cypark Resources Bhd (CYPARK.KL) is 10.5%.

The Cost of Equity of Cypark Resources Bhd (CYPARK.KL) is 9.85%.

The Cost of Debt of Cypark Resources Bhd (CYPARK.KL) is 14.20%.

	Range	Selected
Cost of equity	7.70% - 12.00%	9.85%
Tax rate	22.80% - 24.70%	23.75%
Cost of debt	7.60% - 20.80%	14.20%
WACC	6.4% - 14.5%	10.5%

WACC

CYPARK.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.57	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	12.00%

Tax rate	22.80%	24.70%
Debt/Equity ratio	2.07	2.07
Cost of debt	7.60%	20.80%

After-tax WACC	6.4%	14.5%


Selected WACC	10.5%

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 (9.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.57) + 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.