K1.KL WACC - Weighted Average Cost of Capital

The WACC of K-One Technology Bhd (K1.KL) is 10.5%.

The Cost of Equity of K-One Technology Bhd (K1.KL) is 10.50%.

The Cost of Debt of K-One Technology Bhd (K1.KL) is 4.45%.

	Range	Selected
Cost of equity	8.70% - 12.30%	10.50%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	4.40% - 4.50%	4.45%
WACC	8.7% - 12.3%	10.5%

WACC

K1.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.72	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.30%

Tax rate	24.00%	24.00%
Debt/Equity ratio	0	0
Cost of debt	4.40%	4.50%

After-tax WACC	8.7%	12.3%


Selected WACC	10.5%

K1.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 K1.KL:

cost_of_equity (10.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.72) + 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.