DSONIC.KL WACC - Weighted Average Cost of Capital

The WACC of Datasonic Group Bhd (DSONIC.KL) is 10.3%.

The Cost of Equity of Datasonic Group Bhd (DSONIC.KL) is 10.80%.

The Cost of Debt of Datasonic Group Bhd (DSONIC.KL) is 4.25%.

	Range	Selected
Cost of equity	9.20% - 12.40%	10.80%
Tax rate	22.70% - 26.60%	24.65%
Cost of debt	4.00% - 4.50%	4.25%
WACC	8.8% - 11.7%	10.3%

WACC

DSONIC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.79	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	12.40%

Tax rate	22.70%	26.60%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	4.50%

After-tax WACC	8.8%	11.7%


Selected WACC	10.3%

DSONIC.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 DSONIC.KL:

cost_of_equity (10.80%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.79) + 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.