GUH.KL WACC - Weighted Average Cost of Capital

The WACC of GUH Holdings Bhd (GUH.KL) is 9.1%.

The Cost of Equity of GUH Holdings Bhd (GUH.KL) is 12.60%.

The Cost of Debt of GUH Holdings Bhd (GUH.KL) is 6.90%.

	Range	Selected
Cost of equity	9.90% - 15.30%	12.60%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	4.80% - 9.00%	6.90%
WACC	6.9% - 11.2%	9.1%

WACC

GUH.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.89	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	15.30%

Tax rate	24.00%	24.00%
Debt/Equity ratio	0.94	0.94
Cost of debt	4.80%	9.00%

After-tax WACC	6.9%	11.2%


Selected WACC	9.1%

GUH.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 GUH.KL:

cost_of_equity (12.60%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.89) + 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.