KHEESAN.KL
Khee San Bhd
Price:  
0.24 
MYR
Volume:  
1,500.00
Malaysia | Food Products
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KHEESAN.KL WACC - Weighted Average Cost of Capital

The WACC of Khee San Bhd (KHEESAN.KL) is 5.7%.

The Cost of Equity of Khee San Bhd (KHEESAN.KL) is 9.05%.
The Cost of Debt of Khee San Bhd (KHEESAN.KL) is 4.40%.

Range Selected
Cost of equity 7.20% - 10.90% 9.05%
Tax rate 4.70% - 8.40% 6.55%
Cost of debt 4.30% - 4.50% 4.40%
WACC 5.1% - 6.3% 5.7%
WACC

KHEESAN.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.5 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 10.90%
Tax rate 4.70% 8.40%
Debt/Equity ratio 2.15 2.15
Cost of debt 4.30% 4.50%
After-tax WACC 5.1% 6.3%
Selected WACC 5.7%

KHEESAN.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 KHEESAN.KL:

cost_of_equity (9.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.5) + 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.