KSSC.KL WACC - Weighted Average Cost of Capital

The WACC of K Seng Seng Corporation Bhd (KSSC.KL) is 9.1%.

The Cost of Equity of K Seng Seng Corporation Bhd (KSSC.KL) is 10.15%.

The Cost of Debt of K Seng Seng Corporation Bhd (KSSC.KL) is 9.20%.

	Range	Selected
Cost of equity	8.30% - 12.00%	10.15%
Tax rate	23.10% - 24.60%	23.85%
Cost of debt	6.10% - 12.30%	9.20%
WACC	7.1% - 11.1%	9.1%

WACC

KSSC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.66	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	12.00%

Tax rate	23.10%	24.60%
Debt/Equity ratio	0.49	0.49
Cost of debt	6.10%	12.30%

After-tax WACC	7.1%	11.1%


Selected WACC	9.1%

KSSC.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 KSSC.KL:

cost_of_equity (10.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.66) + 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.