INNITY.KL WACC - Weighted Average Cost of Capital

The WACC of Innity Corporation Bhd (INNITY.KL) is 10.0%.

The Cost of Equity of Innity Corporation Bhd (INNITY.KL) is 10.85%.

The Cost of Debt of Innity Corporation Bhd (INNITY.KL) is 5.50%.

	Range	Selected
Cost of equity	9.50% - 12.20%	10.85%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.7% - 11.3%	10.0%

WACC

INNITY.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.83	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.20%

Tax rate	24.00%	24.00%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.00%	7.00%

After-tax WACC	8.7%	11.3%


Selected WACC	10.0%

INNITY.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 INNITY.KL:

cost_of_equity (10.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.83) + 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.