ECOHLDS.KL WACC - Weighted Average Cost of Capital

The WACC of Ecobuilt Holdings Bhd (ECOHLDS.KL) is 10.3%.

The Cost of Equity of Ecobuilt Holdings Bhd (ECOHLDS.KL) is 11.85%.

The Cost of Debt of Ecobuilt Holdings Bhd (ECOHLDS.KL) is 6.50%.

	Range	Selected
Cost of equity	7.80% - 15.90%	11.85%
Tax rate	8.40% - 9.40%	8.90%
Cost of debt	4.00% - 9.00%	6.50%
WACC	6.7% - 13.8%	10.3%

WACC

ECOHLDS.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.58	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	15.90%

Tax rate	8.40%	9.40%
Debt/Equity ratio	0.36	0.36
Cost of debt	4.00%	9.00%

After-tax WACC	6.7%	13.8%


Selected WACC	10.3%

ECOHLDS.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 ECOHLDS.KL:

cost_of_equity (11.85%) = 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.