DYNACIA.KL WACC - Weighted Average Cost of Capital

The WACC of Dynaciate Group Bhd (DYNACIA.KL) is 8.5%.

The Cost of Equity of Dynaciate Group Bhd (DYNACIA.KL) is 7.40%.

The Cost of Debt of Dynaciate Group Bhd (DYNACIA.KL) is 11.20%.

	Range	Selected
Cost of equity	6.60% - 8.20%	7.40%
Tax rate	4.70% - 6.90%	5.80%
Cost of debt	5.70% - 16.70%	11.20%
WACC	6.2% - 10.9%	8.5%

WACC

DYNACIA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	7.3%	8.3%
Adjusted beta	0.37	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.20%

Tax rate	4.70%	6.90%
Debt/Equity ratio	0.59	0.59
Cost of debt	5.70%	16.70%

After-tax WACC	6.2%	10.9%


Selected WACC	8.5%

DYNACIA.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 DYNACIA.KL:

cost_of_equity (7.40%) = risk_free_rate (4.15%) + equity_risk_premium (7.80%) * adjusted_beta (0.37) + 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.