NGGB.KL
Nextgreen Global Bhd
Price:  
0.75 
MYR
Volume:  
645,400.00
Malaysia | Commercial Services & Supplies
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NGGB.KL WACC - Weighted Average Cost of Capital

The WACC of Nextgreen Global Bhd (NGGB.KL) is 8.2%.

The Cost of Equity of Nextgreen Global Bhd (NGGB.KL) is 8.45%.
The Cost of Debt of Nextgreen Global Bhd (NGGB.KL) is 4.45%.

Range Selected
Cost of equity 7.20% - 9.70% 8.45%
Tax rate 2.90% - 6.50% 4.70%
Cost of debt 4.00% - 4.90% 4.45%
WACC 7.0% - 9.3% 8.2%
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 0.5 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 9.70%
Tax rate 2.90% 6.50%
Debt/Equity ratio 0.08 0.08
Cost of debt 4.00% 4.90%
After-tax WACC 7.0% 9.3%
Selected WACC 8.2%

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 (8.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.5) + 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.