FIMACOR.KL WACC - Weighted Average Cost of Capital
The WACC of Fima Corporation Bhd (FIMACOR.KL) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.8% - 11.1% | 9.45% |
| Tax rate | 20.0% - 22.0% | 21% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 9.9% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.58 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 11.1% |
| Tax rate | 20.0% | 22.0% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 9.9% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FIMACOR.KL | Fima Corporation Bhd | 0.2 | 0.39 | 0.34 |
| 1172.HK | Magnus Concordia Group Ltd | 1.7 | 0.74 | 0.32 |
| 1540.HK | Left Field Printing Group Ltd | 0.05 | -0.08 | -0.08 |
| CFM.KL | Computer Forms (Malaysia) Bhd | 0.2 | 0.83 | 0.72 |
| MTAG.KL | Mtag Group Bhd | 0.01 | 0.81 | 0.81 |
| NGGB.KL | Nextgreen Global Bhd | 0.08 | 0.58 | 0.55 |
| REPRO.NS | Repro India Ltd | 0.08 | 1.48 | 1.4 |
| TBSP.BK | Tbsp PCL | 0.01 | -0.05 | -0.05 |
| TIENWAH.KL | Tien Wah Press Holdings Bhd | 0.14 | 0.33 | 0.3 |
| TKS.BK | TKS Technologies PCL | 0.24 | 0.82 | 0.69 |
| Low | High | |
| Unlevered beta | 0.33 | 0.6 |
| Relevered beta | 0.37 | 0.7 |
| Adjusted relevered beta | 0.58 | 0.8 |
FIMACOR.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 FIMACOR.KL:
cost_of_equity (9.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.58) + 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.