ECONBHD.KL WACC - Weighted Average Cost of Capital

The WACC of Econpile Holdings Bhd (ECONBHD.KL) is 7.9%.

The Cost of Equity of Econpile Holdings Bhd (ECONBHD.KL) is 8.35%.

The Cost of Debt of Econpile Holdings Bhd (ECONBHD.KL) is 10.10%.

	Range	Selected
Cost of equity	6.60% - 10.10%	8.35%
Tax rate	29.00% - 35.20%	32.10%
Cost of debt	4.60% - 15.60%	10.10%
WACC	5.8% - 10.1%	7.9%

WACC

ECONBHD.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.41	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.10%

Tax rate	29.00%	35.20%
Debt/Equity ratio	0.33	0.33
Cost of debt	4.60%	15.60%

After-tax WACC	5.8%	10.1%


Selected WACC	7.9%

ECONBHD.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 ECONBHD.KL:

cost_of_equity (8.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.41) + 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.