NAIM.KL WACC - Weighted Average Cost of Capital
The WACC of Naim Holdings Bhd (NAIM.KL) is 11.0%.
| Range | Selected | |
| Cost of equity | 10.9% - 14.8% | 12.85% |
| Tax rate | 18.9% - 19.7% | 19.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 9.4% - 12.6% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.04 | 1.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 14.8% |
| Tax rate | 18.9% | 19.7% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 9.4% | 12.6% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NAIM.KL | Naim Holdings Bhd | 0.24 | 1.53 | 1.28 |
| 1693.HK | BGMC International Ltd | 0.05 | -0.06 | -0.06 |
| ECONBHD.KL | Econpile Holdings Bhd | 0.3 | 2.01 | 1.62 |
| FAJAR.KL | Fajarbaru Builder Group Bhd | 0.4 | 1.9 | 1.44 |
| GADANG.KL | Gadang Holdings Bhd | 0.94 | 1.71 | 0.97 |
| HSL.KL | Hock Seng Lee Bhd | 0.04 | 1.17 | 1.14 |
| INTA.KL | Inta Bina Group Bhd | 0.47 | 1.7 | 1.23 |
| PESONA.KL | Pesona Metro Holdings Bhd | 1.13 | 1.46 | 0.76 |
| ROHAS.KL | Rohas Tecnic Bhd | 1.36 | 1.51 | 0.72 |
| TRC.KL | TRC Synergy Bhd | 0.65 | 1.15 | 0.75 |
| Low | High | |
| Unlevered beta | 0.89 | 1.17 |
| Relevered beta | 1.06 | 1.4 |
| Adjusted relevered beta | 1.04 | 1.27 |
NAIM.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 NAIM.KL:
cost_of_equity (12.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.04) + 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.