GENM.KL WACC - Weighted Average Cost of Capital

The WACC of Genting Malaysia Bhd (GENM.KL) is 10.6%.

The Cost of Equity of Genting Malaysia Bhd (GENM.KL) is 9.95%.

The Cost of Debt of Genting Malaysia Bhd (GENM.KL) is 13.10%.

	Range	Selected
Cost of equity	7.50% - 12.40%	9.95%
Tax rate	10.50% - 13.80%	12.15%
Cost of debt	4.50% - 21.70%	13.10%
WACC	5.9% - 15.3%	10.6%

WACC

GENM.KL WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.9%	6.9%
Adjusted beta	0.55	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	12.40%

Tax rate	10.50%	13.80%
Debt/Equity ratio	0.82	0.82
Cost of debt	4.50%	21.70%

After-tax WACC	5.9%	15.3%


Selected WACC	10.6%

GENM.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 GENM.KL:

cost_of_equity (9.95%) = risk_free_rate (4.45%) + equity_risk_premium (6.40%) * adjusted_beta (0.55) + 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.