KEINHIN.KL WACC - Weighted Average Cost of Capital

The WACC of Kein Hing International Bhd (KEINHIN.KL) is 11.0%.

The Cost of Equity of Kein Hing International Bhd (KEINHIN.KL) is 13.40%.

The Cost of Debt of Kein Hing International Bhd (KEINHIN.KL) is 6.15%.

	Range	Selected
Cost of equity	11.50% - 15.30%	13.40%
Tax rate	16.90% - 18.50%	17.70%
Cost of debt	5.00% - 7.30%	6.15%
WACC	9.4% - 12.7%	11.0%

WACC

KEINHIN.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.12	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	15.30%

Tax rate	16.90%	18.50%
Debt/Equity ratio	0.4	0.4
Cost of debt	5.00%	7.30%

After-tax WACC	9.4%	12.7%


Selected WACC	11.0%

KEINHIN.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 KEINHIN.KL:

cost_of_equity (13.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.12) + 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.