KIMLUN.KL WACC - Weighted Average Cost of Capital

The WACC of Kimlun Corporation Bhd (KIMLUN.KL) is 8.9%.

The Cost of Equity of Kimlun Corporation Bhd (KIMLUN.KL) is 12.50%.

The Cost of Debt of Kimlun Corporation Bhd (KIMLUN.KL) is 6.55%.

	Range	Selected
Cost of equity	10.90% - 14.10%	12.50%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	6.20% - 6.90%	6.55%
WACC	7.9% - 9.9%	8.9%

WACC

KIMLUN.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.03	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.10%

Tax rate	24.00%	24.00%
Debt/Equity ratio	0.9	0.9
Cost of debt	6.20%	6.90%

After-tax WACC	7.9%	9.9%


Selected WACC	8.9%

KIMLUN.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 KIMLUN.KL:

cost_of_equity (12.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.03) + 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.