EITA.KL
EITA Resources Bhd
Price:  
0.62 
MYR
Volume:  
215,600.00
Malaysia | Machinery
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EITA.KL WACC - Weighted Average Cost of Capital

The WACC of EITA Resources Bhd (EITA.KL) is 9.5%.

The Cost of Equity of EITA Resources Bhd (EITA.KL) is 11.40%.
The Cost of Debt of EITA Resources Bhd (EITA.KL) is 5.20%.

Range Selected
Cost of equity 8.70% - 14.10% 11.40%
Tax rate 26.70% - 34.10% 30.40%
Cost of debt 5.00% - 5.40% 5.20%
WACC 7.5% - 11.6% 9.5%
WACC

EITA.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.72 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 14.10%
Tax rate 26.70% 34.10%
Debt/Equity ratio 0.31 0.31
Cost of debt 5.00% 5.40%
After-tax WACC 7.5% 11.6%
Selected WACC 9.5%

EITA.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 EITA.KL:

cost_of_equity (11.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.72) + 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.