FPGROUP.KL
Foundpac Group Bhd
Price:  
0.26 
MYR
Volume:  
236,300
Malaysia | Semiconductors & Semiconductor Equipment

FPGROUP.KL WACC - Weighted Average Cost of Capital

The WACC of Foundpac Group Bhd (FPGROUP.KL) is 13.2%.

The Cost of Equity of Foundpac Group Bhd (FPGROUP.KL) is 13.4%.
The Cost of Debt of Foundpac Group Bhd (FPGROUP.KL) is 4.45%.

RangeSelected
Cost of equity11.2% - 15.6%13.4%
Tax rate23.4% - 31.2%27.3%
Cost of debt4.4% - 4.5%4.45%
WACC11.1% - 15.4%13.2%
WACC

FPGROUP.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta1.091.37
Additional risk adjustments0.0%0.5%
Cost of equity11.2%15.6%
Tax rate23.4%31.2%
Debt/Equity ratio
0.020.02
Cost of debt4.4%4.5%
After-tax WACC11.1%15.4%
Selected WACC13.2%

FPGROUP.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 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.