KYM.KL WACC - Weighted Average Cost of Capital

The WACC of KYM Holdings Bhd (KYM.KL) is 8.4%.

The Cost of Equity of KYM Holdings Bhd (KYM.KL) is 10.75%.

The Cost of Debt of KYM Holdings Bhd (KYM.KL) is 5.95%.

	Range	Selected
Cost of equity	8.30% - 13.20%	10.75%
Tax rate	27.40% - 28.60%	28.00%
Cost of debt	4.50% - 7.40%	5.95%
WACC	6.5% - 10.4%	8.4%

WACC

KYM.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	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	13.20%

Tax rate	27.40%	28.60%
Debt/Equity ratio	0.55	0.55
Cost of debt	4.50%	7.40%

After-tax WACC	6.5%	10.4%


Selected WACC	8.4%

KYM.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 KYM.KL:

cost_of_equity (10.75%) = 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.