HIAPTEK.KL
Hiap Teck Venture Bhd
Price:  
0.30 
MYR
Volume:  
7,975,900.00
Malaysia | Metals & Mining
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HIAPTEK.KL WACC - Weighted Average Cost of Capital

The WACC of Hiap Teck Venture Bhd (HIAPTEK.KL) is 8.1%.

The Cost of Equity of Hiap Teck Venture Bhd (HIAPTEK.KL) is 7.85%.
The Cost of Debt of Hiap Teck Venture Bhd (HIAPTEK.KL) is 9.80%.

Range Selected
Cost of equity 6.50% - 9.20% 7.85%
Tax rate 13.00% - 16.60% 14.80%
Cost of debt 4.00% - 15.60% 9.80%
WACC 4.9% - 11.3% 8.1%
WACC

HIAPTEK.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.39 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 9.20%
Tax rate 13.00% 16.60%
Debt/Equity ratio 1.17 1.17
Cost of debt 4.00% 15.60%
After-tax WACC 4.9% 11.3%
Selected WACC 8.1%

HIAPTEK.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 HIAPTEK.KL:

cost_of_equity (7.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.39) + 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.