KSSC.KL WACC - Weighted Average Cost of Capital

The WACC of K Seng Seng Corporation Bhd (KSSC.KL) is 9.3%.

The Cost of Equity of K Seng Seng Corporation Bhd (KSSC.KL) is 11.00%.

The Cost of Debt of K Seng Seng Corporation Bhd (KSSC.KL) is 10.75%.

	Range	Selected
Cost of equity	7.40% - 14.60%	11.00%
Tax rate	24.30% - 32.10%	28.20%
Cost of debt	5.90% - 15.60%	10.75%
WACC	6.0% - 12.6%	9.3%

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	0.52	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	14.60%

Tax rate	24.30%	32.10%
Debt/Equity ratio	0.95	0.95
Cost of debt	5.90%	15.60%

After-tax WACC	6.0%	12.6%


Selected WACC	9.3%

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 (11.00%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.52) + 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.