IGBB.KL
Igb Bhd
Price:  
2.90 
MYR
Volume:  
175,000.00
Malaysia | Diversified Financial Services
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IGBB.KL WACC - Weighted Average Cost of Capital

The WACC of Igb Bhd (IGBB.KL) is 6.6%.

The Cost of Equity of Igb Bhd (IGBB.KL) is 8.85%.
The Cost of Debt of Igb Bhd (IGBB.KL) is 5.50%.

Range Selected
Cost of equity 7.60% - 10.10% 8.85%
Tax rate 20.70% - 26.00% 23.35%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.5% - 7.8% 6.6%
WACC

IGBB.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.56 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.10%
Tax rate 20.70% 26.00%
Debt/Equity ratio 0.9 0.9
Cost of debt 4.00% 7.00%
After-tax WACC 5.5% 7.8%
Selected WACC 6.6%

IGBB.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 IGBB.KL:

cost_of_equity (8.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.56) + 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.