EWEIN.KL
Ewein Bhd
Price:  
0.77 
MYR
Volume:  
240,000
Malaysia | Machinery

EWEIN.KL WACC - Weighted Average Cost of Capital

The WACC of Ewein Bhd (EWEIN.KL) is 8.1%.

The Cost of Equity of Ewein Bhd (EWEIN.KL) is 8.65%.
The Cost of Debt of Ewein Bhd (EWEIN.KL) is 8.45%.

RangeSelected
Cost of equity7.3% - 10.0%8.65%
Tax rate32.1% - 45.5%38.8%
Cost of debt4.6% - 12.3%8.45%
WACC6.6% - 9.5%8.1%
WACC

EWEIN.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.510.67
Additional risk adjustments0.0%0.5%
Cost of equity7.3%10.0%
Tax rate32.1%45.5%
Debt/Equity ratio
0.190.19
Cost of debt4.6%12.3%
After-tax WACC6.6%9.5%
Selected WACC8.1%

EWEIN.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 EWEIN.KL:

cost_of_equity (8.65%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.51) + 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.