The WACC of Ewein Bhd (EWEIN.KL) is 8.1%.
Range | Selected | |
Cost of equity | 7.3% - 10.0% | 8.65% |
Tax rate | 32.1% - 45.5% | 38.8% |
Cost of debt | 4.6% - 12.3% | 8.45% |
WACC | 6.6% - 9.5% | 8.1% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 0.51 | 0.67 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.3% | 10.0% |
Tax rate | 32.1% | 45.5% |
Debt/Equity ratio | 0.19 | 0.19 |
Cost of debt | 4.6% | 12.3% |
After-tax WACC | 6.6% | 9.5% |
Selected WACC | 8.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
EWEIN.KL | Ewein Bhd | 0.19 | 1.38 | 1.23 |
AT.KL | AT Systematization Bhd | 0.35 | -1.3 | -1.07 |
CHINWEL.KL | Chin Well Holdings Bhd | 0.01 | 0.22 | 0.22 |
EITA.KL | EITA Resources Bhd | 0.31 | 0.46 | 0.38 |
FITTERS.KL | Fitters Diversified Bhd | 0.33 | 1.01 | 0.84 |
KEINHIN.KL | Kein Hing International Bhd | 0.4 | 0.76 | 0.61 |
MBL.KL | Muar Ban Lee Group Bhd | 0.16 | 0.35 | 0.32 |
POLYDM.KL | Polydamic Group Bhd | 0.08 | 0.28 | 0.26 |
SANICHI.KL | Sanichi Technology Bhd | 1.82 | -1.11 | -0.53 |
UNIMECH.KL | Unimech Group Bhd | 0.46 | 0.27 | 0.21 |
Low | High | |
Unlevered beta | 0.25 | 0.34 |
Relevered beta | 0.27 | 0.51 |
Adjusted relevered beta | 0.51 | 0.67 |
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.