GENETEC.KL WACC - Weighted Average Cost of Capital

The WACC of Genetec Technology Bhd (GENETEC.KL) is 12.9%.

The Cost of Equity of Genetec Technology Bhd (GENETEC.KL) is 13.20%.

The Cost of Debt of Genetec Technology Bhd (GENETEC.KL) is 4.65%.

	Range	Selected
Cost of equity	10.80% - 15.60%	13.20%
Tax rate	8.10% - 9.20%	8.65%
Cost of debt	4.40% - 4.90%	4.65%
WACC	10.6% - 15.2%	12.9%

WACC

GENETEC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.02	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	15.60%

Tax rate	8.10%	9.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.40%	4.90%

After-tax WACC	10.6%	15.2%


Selected WACC	12.9%

GENETEC.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 GENETEC.KL:

cost_of_equity (13.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.02) + 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.