KPSCB.KL WACC - Weighted Average Cost of Capital

The WACC of Kps Consortium Bhd (KPSCB.KL) is 7.6%.

The Cost of Equity of Kps Consortium Bhd (KPSCB.KL) is 14.75%.

The Cost of Debt of Kps Consortium Bhd (KPSCB.KL) is 5.45%.

	Range	Selected
Cost of equity	12.50% - 17.00%	14.75%
Tax rate	20.60% - 21.80%	21.20%
Cost of debt	4.00% - 6.90%	5.45%
WACC	6.1% - 9.1%	7.6%

WACC

KPSCB.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.27	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	17.00%

Tax rate	20.60%	21.80%
Debt/Equity ratio	2.15	2.15
Cost of debt	4.00%	6.90%

After-tax WACC	6.1%	9.1%


Selected WACC	7.6%

KPSCB.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 KPSCB.KL:

cost_of_equity (14.75%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.27) + 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.