NOTION.KL
Notion VTec Bhd
Price:  
0.62 
MYR
Volume:  
3,122,600
Malaysia | Electronic Equipment, Instruments & Components

NOTION.KL WACC - Weighted Average Cost of Capital

The WACC of Notion VTec Bhd (NOTION.KL) is 10.2%.

The Cost of Equity of Notion VTec Bhd (NOTION.KL) is 11.25%.
The Cost of Debt of Notion VTec Bhd (NOTION.KL) is 4.95%.

RangeSelected
Cost of equity9.0% - 13.5%11.25%
Tax rate17.4% - 24.3%20.85%
Cost of debt4.4% - 5.5%4.95%
WACC8.2% - 12.2%10.2%
WACC

NOTION.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.761.11
Additional risk adjustments0.0%0.5%
Cost of equity9.0%13.5%
Tax rate17.4%24.3%
Debt/Equity ratio
0.160.16
Cost of debt4.4%5.5%
After-tax WACC8.2%12.2%
Selected WACC10.2%

NOTION.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 NOTION.KL:

cost_of_equity (11.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.76) + 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.