HHGROUP.KL
Heng Huat Resources Group Bhd
Price:  
0.27 
MYR
Volume:  
7,383,100.00
Malaysia | Oil, Gas & Consumable Fuels
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HHGROUP.KL WACC - Weighted Average Cost of Capital

The WACC of Heng Huat Resources Group Bhd (HHGROUP.KL) is 10.6%.

The Cost of Equity of Heng Huat Resources Group Bhd (HHGROUP.KL) is 11.60%.
The Cost of Debt of Heng Huat Resources Group Bhd (HHGROUP.KL) is 4.30%.

Range Selected
Cost of equity 10.40% - 12.80% 11.60%
Tax rate 8.20% - 10.10% 9.15%
Cost of debt 4.00% - 4.60% 4.30%
WACC 9.5% - 11.6% 10.6%
WACC

HHGROUP.KL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 7.3% 8.3%
Adjusted beta 0.89 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.40% 12.80%
Tax rate 8.20% 10.10%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.00% 4.60%
After-tax WACC 9.5% 11.6%
Selected WACC 10.6%

HHGROUP.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 HHGROUP.KL:

cost_of_equity (11.60%) = risk_free_rate (4.15%) + equity_risk_premium (7.80%) * 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.