The WACC of Foundpac Group Bhd (FPGROUP.KL) is 13.2%.
Range | Selected | |
Cost of equity | 11.2% - 15.6% | 13.4% |
Tax rate | 23.4% - 31.2% | 27.3% |
Cost of debt | 4.4% - 4.5% | 4.45% |
WACC | 11.1% - 15.4% | 13.2% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 1.09 | 1.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.2% | 15.6% |
Tax rate | 23.4% | 31.2% |
Debt/Equity ratio | 0.02 | 0.02 |
Cost of debt | 4.4% | 4.5% |
After-tax WACC | 11.1% | 15.4% |
Selected WACC | 13.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
FPGROUP.KL | Foundpac Group Bhd | 0.02 | 1.52 | 1.51 |
073570.KQ | WI Co Ltd | 0.03 | 0.96 | 0.94 |
123010.KQ | iA Networks Co Ltd | 0.62 | 0.51 | 0.35 |
224060.KQ | CODI-M Co Ltd | 3.51 | 0.64 | 0.18 |
AEMULUS.KL | Aemulus Holdings Bhd | 0.23 | 1.86 | 1.59 |
JFTECH.KL | JF Technology Bhd | 0.01 | 1.88 | 1.87 |
MI.KL | MI Technovation Bhd | 0.03 | 1.64 | 1.61 |
MQTECH.KL | MQ Technology Bhd | 0.01 | 1.23 | 1.23 |
TURIYA.KL | Turiya Bhd | 0.53 | 1 | 0.72 |
VITROX.KL | ViTrox Corporation Bhd | 0.01 | 1.63 | 1.62 |
Low | High | |
Unlevered beta | 1.11 | 1.54 |
Relevered beta | 1.13 | 1.55 |
Adjusted relevered beta | 1.09 | 1.37 |
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 FPGROUP.KL:
cost_of_equity (13.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.09) + 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.