GENTING.KL
Genting Bhd
Price:  
3.16 
MYR
Volume:  
3,055,300.00
Malaysia | Hotels, Restaurants & Leisure
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GENTING.KL WACC - Weighted Average Cost of Capital

The WACC of Genting Bhd (GENTING.KL) is 7.6%.

The Cost of Equity of Genting Bhd (GENTING.KL) is 10.15%.
The Cost of Debt of Genting Bhd (GENTING.KL) is 9.35%.

Range Selected
Cost of equity 8.30% - 12.00% 10.15%
Tax rate 27.00% - 31.50% 29.25%
Cost of debt 4.50% - 14.20% 9.35%
WACC 4.8% - 10.4% 7.6%
WACC

GENTING.KL WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.9% 6.9%
Adjusted beta 0.68 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 12.00%
Tax rate 27.00% 31.50%
Debt/Equity ratio 2.23 2.23
Cost of debt 4.50% 14.20%
After-tax WACC 4.8% 10.4%
Selected WACC 7.6%

GENTING.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 GENTING.KL:

cost_of_equity (10.15%) = risk_free_rate (4.45%) + equity_risk_premium (6.40%) * adjusted_beta (0.68) + 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.