LKL.KL
Lkl International Bhd
Price:  
0.07 
MYR
Volume:  
15,700.00
Malaysia | Health Care Equipment & Supplies
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LKL.KL WACC - Weighted Average Cost of Capital

The WACC of Lkl International Bhd (LKL.KL) is 6.9%.

The Cost of Equity of Lkl International Bhd (LKL.KL) is 10.15%.
The Cost of Debt of Lkl International Bhd (LKL.KL) is 5.80%.

Range Selected
Cost of equity 7.20% - 13.10% 10.15%
Tax rate 2.60% - 9.80% 6.20%
Cost of debt 4.60% - 7.00% 5.80%
WACC 5.3% - 8.5% 6.9%
WACC

LKL.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.49 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 13.10%
Tax rate 2.60% 9.80%
Debt/Equity ratio 2.12 2.12
Cost of debt 4.60% 7.00%
After-tax WACC 5.3% 8.5%
Selected WACC 6.9%

LKL.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 LKL.KL:

cost_of_equity (10.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.49) + 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.