The WACC of Notion VTec Bhd (NOTION.KL) is 10.2%.
Range | Selected | |
Cost of equity | 9.0% - 13.5% | 11.25% |
Tax rate | 17.4% - 24.3% | 20.85% |
Cost of debt | 4.4% - 5.5% | 4.95% |
WACC | 8.2% - 12.2% | 10.2% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 0.76 | 1.11 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.0% | 13.5% |
Tax rate | 17.4% | 24.3% |
Debt/Equity ratio | 0.16 | 0.16 |
Cost of debt | 4.4% | 5.5% |
After-tax WACC | 8.2% | 12.2% |
Selected WACC | 10.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NOTION.KL | Notion VTec Bhd | 0.16 | 1.19 | 1.06 |
012340.KQ | Nuin Tek Co Ltd | 0.98 | 0.64 | 0.37 |
131400.KQ | Act Co Ltd (Daegu) | 0.05 | 1.56 | 1.51 |
3311.TW | Silitech Technology Corp | 0.02 | 0.04 | 0.04 |
3321.TW | Uniflex Technology Inc | 1.3 | 1.41 | 0.71 |
6907.T | Geomatec Co Ltd | 0.27 | 1.24 | 1.03 |
AEM.KL | AE Multi Holdings Bhd | 4.16 | 0.19 | 0.05 |
JHM.KL | JHM Consolidation Bhd | 0.43 | 1.63 | 1.23 |
PNEPCB.KL | Pne Pcb Bhd | 0.75 | 0.35 | 0.22 |
SKPRES.KL | SKP Resources Bhd | 0.05 | 1.56 | 1.51 |
Low | High | |
Unlevered beta | 0.57 | 1.04 |
Relevered beta | 0.64 | 1.16 |
Adjusted relevered beta | 0.76 | 1.11 |
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.