HEXTAR.KL WACC - Weighted Average Cost of Capital

The WACC of Hextar Global Bhd (HEXTAR.KL) is 10.5%.

The Cost of Equity of Hextar Global Bhd (HEXTAR.KL) is 11.25%.

The Cost of Debt of Hextar Global Bhd (HEXTAR.KL) is 5.35%.

	Range	Selected
Cost of equity	9.70% - 12.80%	11.25%
Tax rate	25.40% - 26.20%	25.80%
Cost of debt	5.00% - 5.70%	5.35%
WACC	9.1% - 12.0%	10.5%

WACC

HEXTAR.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.86	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.80%

Tax rate	25.40%	26.20%
Debt/Equity ratio	0.11	0.11
Cost of debt	5.00%	5.70%

After-tax WACC	9.1%	12.0%


Selected WACC	10.5%

HEXTAR.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 HEXTAR.KL:

cost_of_equity (11.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.86) + 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.