EMETALL.KL WACC - Weighted Average Cost of Capital

The WACC of Eonmetall Group Bhd (EMETALL.KL) is 14.6%.

The Cost of Equity of Eonmetall Group Bhd (EMETALL.KL) is 8.15%.

The Cost of Debt of Eonmetall Group Bhd (EMETALL.KL) is 23.80%.

	Range	Selected
Cost of equity	6.70% - 9.60%	8.15%
Tax rate	18.80% - 26.10%	22.45%
Cost of debt	23.80% - 23.80%	23.80%
WACC	14.6% - 14.6%	14.6%

WACC

EMETALL.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.43	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	9.60%

Tax rate	18.80%	26.10%
Debt/Equity ratio	1.7	1.7
Cost of debt	23.80%	23.80%

After-tax WACC	14.6%	14.6%


Selected WACC	14.6%

EMETALL.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 EMETALL.KL:

cost_of_equity (8.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.43) + 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.