DNONCE.KL WACC - Weighted Average Cost of Capital

The WACC of D'nonce Technology Bhd (DNONCE.KL) is 13.6%.

The Cost of Equity of D'nonce Technology Bhd (DNONCE.KL) is 18.00%.

The Cost of Debt of D'nonce Technology Bhd (DNONCE.KL) is 12.80%.

	Range	Selected
Cost of equity	15.50% - 20.50%	18.00%
Tax rate	8.30% - 9.50%	8.90%
Cost of debt	4.80% - 20.80%	12.80%
WACC	7.8% - 19.3%	13.6%

WACC

DNONCE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.71	2.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	20.50%

Tax rate	8.30%	9.50%
Debt/Equity ratio	2.26	2.26
Cost of debt	4.80%	20.80%

After-tax WACC	7.8%	19.3%


Selected WACC	13.6%

DNONCE.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 DNONCE.KL:

cost_of_equity (18.00%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.71) + 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.