LAGENDA.KL WACC - Weighted Average Cost of Capital

The WACC of Lagenda Properties Bhd (LAGENDA.KL) is 8.1%.

The Cost of Equity of Lagenda Properties Bhd (LAGENDA.KL) is 11.65%.

The Cost of Debt of Lagenda Properties Bhd (LAGENDA.KL) is 5.30%.

	Range	Selected
Cost of equity	9.40% - 13.90%	11.65%
Tax rate	28.60% - 29.40%	29.00%
Cost of debt	4.50% - 6.10%	5.30%
WACC	6.6% - 9.6%	8.1%

WACC

LAGENDA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.82	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	13.90%

Tax rate	28.60%	29.40%
Debt/Equity ratio	0.8	0.8
Cost of debt	4.50%	6.10%

After-tax WACC	6.6%	9.6%


Selected WACC	8.1%

LAGENDA.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 LAGENDA.KL:

cost_of_equity (11.65%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.82) + 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.