GCAP.KL WACC - Weighted Average Cost of Capital

The WACC of G Capital Bhd (GCAP.KL) is 9.9%.

The Cost of Equity of G Capital Bhd (GCAP.KL) is 7.25%.

The Cost of Debt of G Capital Bhd (GCAP.KL) is 14.60%.

	Range	Selected
Cost of equity	6.40% - 8.10%	7.25%
Tax rate	1.60% - 10.50%	6.05%
Cost of debt	5.40% - 23.80%	14.60%
WACC	6.0% - 13.8%	9.9%

WACC

GCAP.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.39	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.10%

Tax rate	1.60%	10.50%
Debt/Equity ratio	0.77	0.77
Cost of debt	5.40%	23.80%

After-tax WACC	6.0%	13.8%


Selected WACC	9.9%

GCAP.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 GCAP.KL:

cost_of_equity (7.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.39) + 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.