ECONBHD.KL WACC - Weighted Average Cost of Capital
The WACC of Econpile Holdings Bhd (ECONBHD.KL) is 9.3%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.7% | 9.05% |
| Tax rate | 25.7% - 28.7% | 27.2% |
| Cost of debt | 4.4% - 23.8% | 14.1% |
| WACC | 6.3% - 12.3% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.52 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.7% |
| Tax rate | 25.7% | 28.7% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 4.4% | 23.8% |
| After-tax WACC | 6.3% | 12.3% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ECONBHD.KL | Econpile Holdings Bhd | 0.34 | 2.07 | 1.66 |
| 1693.HK | BGMC International Ltd | 0.09 | -0.07 | -0.06 |
| 1953.HK | Rimbaco Group Global Ltd | 0.01 | 0.41 | 0.41 |
| AME.KL | AME Elite Consortium Bhd | 0.17 | 0.73 | 0.65 |
| BPURI.KL | Bina Puri Holdings Bhd | 1.74 | 0.27 | 0.12 |
| DKLS.KL | Dkls Industries Bhd | 0.12 | -0.24 | -0.22 |
| GKENT.KL | George Kent (Malaysia) Bhd | 0.98 | 0.52 | 0.31 |
| HOHUP.KL | Ho Hup Construction Company Bhd | 15.5 | 0.01 | 0 |
| HSL.KL | Hock Seng Lee Bhd | 0.04 | 1.17 | 1.14 |
| MITRA.KL | Mitrajaya Holdings Bhd | 0.3 | 1.32 | 1.09 |
| Low | High | |
| Unlevered beta | 0.23 | 0.51 |
| Relevered beta | 0.28 | 0.63 |
| Adjusted relevered beta | 0.52 | 0.75 |
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 (9.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.52) + 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.