KSL.KL WACC - Weighted Average Cost of Capital

The WACC of KSL Holdings Bhd (KSL.KL) is 9.8%.

The Cost of Equity of KSL Holdings Bhd (KSL.KL) is 11.25%.

The Cost of Debt of KSL Holdings Bhd (KSL.KL) is 4.45%.

	Range	Selected
Cost of equity	10.10% - 12.40%	11.25%
Tax rate	20.70% - 22.40%	21.55%
Cost of debt	4.40% - 4.50%	4.45%
WACC	8.8% - 10.7%	9.8%

WACC

KSL.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.92	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.40%

Tax rate	20.70%	22.40%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.40%	4.50%

After-tax WACC	8.8%	10.7%


Selected WACC	9.8%

KSL.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 KSL.KL:

cost_of_equity (11.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.92) + 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.