LYSAGHT.KL WACC - Weighted Average Cost of Capital

The WACC of Lysaght Galvanized Steel Bhd (LYSAGHT.KL) is 9.6%.

The Cost of Equity of Lysaght Galvanized Steel Bhd (LYSAGHT.KL) is 9.65%.

The Cost of Debt of Lysaght Galvanized Steel Bhd (LYSAGHT.KL) is 4.65%.

	Range	Selected
Cost of equity	7.40% - 11.90%	9.65%
Tax rate	19.40% - 20.10%	19.75%
Cost of debt	4.40% - 4.90%	4.65%
WACC	7.4% - 11.8%	9.6%

WACC

LYSAGHT.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.53	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	11.90%

Tax rate	19.40%	20.10%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.40%	4.90%

After-tax WACC	7.4%	11.8%


Selected WACC	9.6%

LYSAGHT.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 LYSAGHT.KL:

cost_of_equity (9.65%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.53) + 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.