KARYON.KL WACC - Weighted Average Cost of Capital
The WACC of Karyon Industries Bhd (KARYON.KL) is 10.0%.
| Range | Selected | |
| Cost of equity | 9.7% - 12.1% | 10.9% |
| Tax rate | 29.4% - 31.5% | 30.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 8.9% - 11.1% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.86 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 12.1% |
| Tax rate | 29.4% | 31.5% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 8.9% | 11.1% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KARYON.KL | Karyon Industries Bhd | 0.13 | 0.76 | 0.7 |
| ANALABS.KL | Analabs Resources Bhd | 0.85 | 0.09 | 0.06 |
| ASIAPLY.KL | Asia Poly Holdings Bhd | 0.44 | 1.53 | 1.17 |
| COMFORT.KL | Comfort Gloves Bhd | 0.26 | 1.12 | 0.94 |
| DPIH.KL | DPI Holdings Bhd | 0 | 0.8 | 0.8 |
| HIL.KL | Hil Industries Bhd | 0 | 0.9 | 0.9 |
| LUSTER.KL | Luster Industries Bhd | 0.41 | 0.67 | 0.52 |
| RGTBHD.KL | Rgt Bhd | 0.42 | 0.98 | 0.75 |
| SAB.KL | Southern Acids (M) Bhd | 0.05 | 0.53 | 0.51 |
| SCIENTX.KL | Scientex Bhd | 0.17 | 0.95 | 0.85 |
| Low | High | |
| Unlevered beta | 0.73 | 0.82 |
| Relevered beta | 0.79 | 0.9 |
| Adjusted relevered beta | 0.86 | 0.93 |
KARYON.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 KARYON.KL:
cost_of_equity (10.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.86) + 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.