FPGROUP.KL WACC - Weighted Average Cost of Capital

The WACC of Foundpac Group Bhd (FPGROUP.KL) is 12.7%.

The Cost of Equity of Foundpac Group Bhd (FPGROUP.KL) is 12.90%.

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

	Range	Selected
Cost of equity	10.20% - 15.60%	12.90%
Tax rate	23.40% - 31.20%	27.30%
Cost of debt	4.40% - 4.50%	4.45%
WACC	10.1% - 15.4%	12.7%

WACC

FPGROUP.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.93	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	15.60%

Tax rate	23.40%	31.20%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.40%	4.50%

After-tax WACC	10.1%	15.4%


Selected WACC	12.7%

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 (12.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.93) + 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.