NGGB.KL WACC - Weighted Average Cost of Capital

The WACC of Nextgreen Global Bhd (NGGB.KL) is 6.8%.

The Cost of Equity of Nextgreen Global Bhd (NGGB.KL) is 7.30%.

The Cost of Debt of Nextgreen Global Bhd (NGGB.KL) is 5.30%.

	Range	Selected
Cost of equity	6.20% - 8.40%	7.30%
Tax rate	5.70% - 16.40%	11.05%
Cost of debt	4.90% - 5.70%	5.30%
WACC	5.9% - 7.8%	6.8%

WACC

NGGB.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.35	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.40%

Tax rate	5.70%	16.40%
Debt/Equity ratio	0.21	0.21
Cost of debt	4.90%	5.70%

After-tax WACC	5.9%	7.8%


Selected WACC	6.8%

NGGB.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 NGGB.KL:

cost_of_equity (7.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.35) + 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.