GENP.KL WACC - Weighted Average Cost of Capital

The WACC of Genting Plantations Bhd (GENP.KL) is 8.1%.

The Cost of Equity of Genting Plantations Bhd (GENP.KL) is 11.30%.

The Cost of Debt of Genting Plantations Bhd (GENP.KL) is 5.05%.

	Range	Selected
Cost of equity	10.10% - 12.50%	11.30%
Tax rate	29.80% - 30.00%	29.90%
Cost of debt	4.80% - 5.30%	5.05%
WACC	7.3% - 8.8%	8.1%

WACC

GENP.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.92	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.50%

Tax rate	29.80%	30.00%
Debt/Equity ratio	0.7	0.7
Cost of debt	4.80%	5.30%

After-tax WACC	7.3%	8.8%


Selected WACC	8.1%

GENP.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 GENP.KL:

cost_of_equity (11.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.92) + 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.