KANGER.KL WACC - Weighted Average Cost of Capital

The WACC of Kanger International Bhd (KANGER.KL) is 8.3%.

The Cost of Equity of Kanger International Bhd (KANGER.KL) is 9.05%.

The Cost of Debt of Kanger International Bhd (KANGER.KL) is 4.25%.

	Range	Selected
Cost of equity	7.50% - 10.60%	9.05%
Tax rate	0.40% - 1.50%	0.95%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.9% - 9.7%	8.3%

WACC

KANGER.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.54	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.60%

Tax rate	0.40%	1.50%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	4.50%

After-tax WACC	6.9%	9.7%


Selected WACC	8.3%

KANGER.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 KANGER.KL:

cost_of_equity (9.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.54) + 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.