OLYMPIA.KL WACC - Weighted Average Cost of Capital
The WACC of Olympia Industries Bhd (OLYMPIA.KL) is 6.3%.
| Range | Selected | |
| Cost of equity | 7.0% - 10.3% | 8.65% |
| Tax rate | 2.7% - 4.1% | 3.4% |
| Cost of debt | 4.5% - 7.0% | 5.75% |
| WACC | 5.1% - 7.6% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.47 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 10.3% |
| Tax rate | 2.7% | 4.1% |
| Debt/Equity ratio | 3.07 | 3.07 |
| Cost of debt | 4.5% | 7.0% |
| After-tax WACC | 5.1% | 7.6% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OLYMPIA.KL | Olympia Industries Bhd | 3.07 | 0.18 | 0.05 |
| 1245.HK | Niraku GC Holdings Inc | 9.74 | 0.16 | 0.02 |
| 5EL.SI | Lasseters International Holdings Ltd | 1.72 | 0.91 | 0.34 |
| 959.HK | Century Entertainment International Holdings Ltd | 2.18 | -0.67 | -0.21 |
| BJLAND.KL | Berjaya Land Bhd | 3.69 | 0.94 | 0.21 |
| BJTOTO.KL | Berjaya Sports Toto Bhd | 0.54 | 0.15 | 0.1 |
| MAGNUM.KL | Magnum Bhd | 0.41 | 0.89 | 0.64 |
| PBH.AX | Pointsbet Holdings Ltd | 0.01 | 0.06 | 0.06 |
| RGB.KL | RGB International Bhd | 0.01 | 1.32 | 1.31 |
| RIC.VN | Royal International JSC | 0.73 | -0.13 | -0.08 |
| Low | High | |
| Unlevered beta | 0.05 | 0.14 |
| Relevered beta | 0.21 | 0.57 |
| Adjusted relevered beta | 0.47 | 0.71 |
OLYMPIA.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 OLYMPIA.KL:
cost_of_equity (8.65%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.47) + 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.