EUROSP.KL WACC - Weighted Average Cost of Capital
The WACC of Eurospan Holdings Bhd (EUROSP.KL) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.4% | 8.2% |
| Tax rate | 9.6% - 13.7% | 11.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.0% - 9.3% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.47 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.4% |
| Tax rate | 9.6% | 13.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.0% | 9.3% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EUROSP.KL | Eurospan Holdings Bhd | 0 | 1.04 | 1.04 |
| 1H8.SI | LY Corporation Ltd | 0.65 | -1.81 | -1.16 |
| DPS.KL | Dps Resources Bhd | 0.44 | 0.56 | 0.41 |
| FACBIND.KL | FACB Industries Incorporated Bhd | 0.01 | 0.22 | 0.21 |
| LEESK.KL | Lee Swee Kiat Group Bhd | 0.07 | 0.15 | 0.14 |
| PARAGON.KL | Paragon Union Bhd | 0.06 | 1.1 | 1.04 |
| SHH.KL | Shh Resources Holdings Bhd | 0.04 | 0.37 | 0.36 |
| SNC.KL | Sand Nisko Capital Bhd | 0.08 | 0.58 | 0.55 |
| SWSCAP.KL | Sws Capital Bhd | 0.87 | 0.27 | 0.15 |
| WEGMANS.KL | Wegmans Holdings Berhad | 0.51 | 0.27 | 0.18 |
| Low | High | |
| Unlevered beta | 0.2 | 0.38 |
| Relevered beta | 0.21 | 0.37 |
| Adjusted relevered beta | 0.47 | 0.58 |
EUROSP.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 EUROSP.KL:
cost_of_equity (8.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.47) + 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.