KHJB.KL
Kim Hin Joo (Malaysia) Bhd
Price:  
0.12 
MYR
Volume:  
200.00
Malaysia | Specialty Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

KHJB.KL WACC - Weighted Average Cost of Capital

The WACC of Kim Hin Joo (Malaysia) Bhd (KHJB.KL) is 10.1%.

The Cost of Equity of Kim Hin Joo (Malaysia) Bhd (KHJB.KL) is 11.30%.
The Cost of Debt of Kim Hin Joo (Malaysia) Bhd (KHJB.KL) is 5.50%.

Range Selected
Cost of equity 9.90% - 12.70% 11.30%
Tax rate 22.00% - 28.30% 25.15%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.8% - 11.5% 10.1%
WACC

KHJB.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.89 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 12.70%
Tax rate 22.00% 28.30%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.00% 7.00%
After-tax WACC 8.8% 11.5%
Selected WACC 10.1%

KHJB.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 KHJB.KL:

cost_of_equity (11.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.89) + 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.