HENGYUAN.KL WACC - Weighted Average Cost of Capital
The WACC of Hengyuan Refining Company Bhd (HENGYUAN.KL) is 6.9%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.0% | 8.8% |
| Tax rate | 2.1% - 15.5% | 8.8% |
| Cost of debt | 6.7% - 7.0% | 6.85% |
| WACC | 6.8% - 7.1% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.55 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.0% |
| Tax rate | 2.1% | 15.5% |
| Debt/Equity ratio | 2.64 | 2.64 |
| Cost of debt | 6.7% | 7.0% |
| After-tax WACC | 6.8% | 7.1% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HENGYUAN.KL | Hengyuan Refining Company Bhd | 2.64 | 0.18 | 0.05 |
| 003650.KS | Michang Oil Ind Co Ltd | 0.3 | 0.09 | 0.07 |
| 060900.KQ | Daehan Green Power Corp | 0.23 | 0.13 | 0.1 |
| 137950.KQ | JC Chemical Corp Ltd | 1.69 | 0.62 | 0.24 |
| 5017.T | Fuji Oil Co Ltd | 6.13 | 1.11 | 0.16 |
| AIE.BK | AI Energy PCL | 0 | 0.15 | 0.15 |
| BSR.VN | Binh Son Refining and Petrochemical JSC | 0.2 | 1.53 | 1.28 |
| ETWA.JK | Eterindo Wahanatama Tbk PT | 2.71 | -1.36 | -0.37 |
| JNOS.ME | Slavneft' Yaroslavnefteorgsintez PAO | 0.8 | 0.02 | 0.01 |
| PETRONM.KL | Petron Malaysia Refining & Marketing Bhd | 1.06 | 0.39 | 0.19 |
| Low | High | |
| Unlevered beta | 0.09 | 0.15 |
| Relevered beta | 0.33 | 0.51 |
| Adjusted relevered beta | 0.55 | 0.67 |
HENGYUAN.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 HENGYUAN.KL:
cost_of_equity (8.80%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * 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.