EWINT.KL
Eco World International Bhd
Price:  
0.34 
MYR
Volume:  
5,043,900.00
Malaysia | Real Estate Management & Development
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EWINT.KL WACC - Weighted Average Cost of Capital

The WACC of Eco World International Bhd (EWINT.KL) is 5.9%.

The Cost of Equity of Eco World International Bhd (EWINT.KL) is 7.25%.
The Cost of Debt of Eco World International Bhd (EWINT.KL) is 5.00%.

Range Selected
Cost of equity 6.30% - 8.20% 7.25%
Tax rate 6.10% - 15.00% 10.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 6.2% 5.9%
WACC

EWINT.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.37 0.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.20%
Tax rate 6.10% 15.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 6.2%
Selected WACC 5.9%

EWINT.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 EWINT.KL:

cost_of_equity (7.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.37) + 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.