GREATEC.KL WACC - Weighted Average Cost of Capital

The WACC of Greatech Technology Bhd (GREATEC.KL) is 13.4%.

The Cost of Equity of Greatech Technology Bhd (GREATEC.KL) is 13.45%.

The Cost of Debt of Greatech Technology Bhd (GREATEC.KL) is 4.25%.

	Range	Selected
Cost of equity	11.10% - 15.80%	13.45%
Tax rate	2.90% - 4.70%	3.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	11.1% - 15.8%	13.4%

WACC

GREATEC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.07	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	15.80%

Tax rate	2.90%	4.70%
Debt/Equity ratio	0	0
Cost of debt	4.00%	4.50%

After-tax WACC	11.1%	15.8%


Selected WACC	13.4%

GREATEC.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 GREATEC.KL:

cost_of_equity (13.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.07) + 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.