HEXZA.KL WACC - Weighted Average Cost of Capital

The WACC of Hexza Corporation Bhd (HEXZA.KL) is 9.3%.

The Cost of Equity of Hexza Corporation Bhd (HEXZA.KL) is 14.95%.

The Cost of Debt of Hexza Corporation Bhd (HEXZA.KL) is 4.45%.

	Range	Selected
Cost of equity	12.50% - 17.40%	14.95%
Tax rate	15.40% - 16.80%	16.10%
Cost of debt	4.40% - 4.50%	4.45%
WACC	8.1% - 10.6%	9.3%

WACC

HEXZA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.27	1.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	17.40%

Tax rate	15.40%	16.80%
Debt/Equity ratio	1	1
Cost of debt	4.40%	4.50%

After-tax WACC	8.1%	10.6%


Selected WACC	9.3%

HEXZA.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 HEXZA.KL:

cost_of_equity (14.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.27) + 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.