HUBLINE.KL WACC - Weighted Average Cost of Capital

The WACC of Hubline Bhd (HUBLINE.KL) is 11.7%.

The Cost of Equity of Hubline Bhd (HUBLINE.KL) is 12.05%.

The Cost of Debt of Hubline Bhd (HUBLINE.KL) is 15.60%.

	Range	Selected
Cost of equity	10.40% - 13.70%	12.05%
Tax rate	26.30% - 33.40%	29.85%
Cost of debt	15.60% - 15.60%	15.60%
WACC	10.7% - 12.7%	11.7%

WACC

HUBLINE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.96	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.70%

Tax rate	26.30%	33.40%
Debt/Equity ratio	0.46	0.46
Cost of debt	15.60%	15.60%

After-tax WACC	10.7%	12.7%


Selected WACC	11.7%

HUBLINE.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 HUBLINE.KL:

cost_of_equity (12.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.96) + 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.