PADINI.KL WACC - Weighted Average Cost of Capital
The WACC of Padini Holdings Berhad (PADINI.KL) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.6% | 8.4% |
| Tax rate | 25.2% - 26.1% | 25.65% |
| Cost of debt | 4.7% - 4.7% | 4.7% |
| WACC | 6.4% - 8.3% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.5 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.6% |
| Tax rate | 25.2% | 26.1% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 4.7% | 4.7% |
| After-tax WACC | 6.4% | 8.3% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PADINI.KL | Padini Holdings Berhad | 0.26 | 0.21 | 0.18 |
| 113.HK | Dickson Concepts (International) Ltd | 0.5 | 0.32 | 0.23 |
| 709.HK | Giordano International Ltd | 0.32 | 0.59 | 0.48 |
| 7494.T | Konaka Co Ltd | 1.86 | 0.66 | 0.28 |
| ATLAN.KL | Atlan Holdings Bhd | 0.3 | 0.13 | 0.11 |
| BONIA.KL | Bonia Corporation Bhd | 0.7 | 0.26 | 0.17 |
| CCB.KL | Cycle & Carriage Bintang Bhd | 0.34 | 0.57 | 0.46 |
| CRG.KL | CRG Incorporated Sdn Bhd | 0.16 | 1.05 | 0.94 |
| HLG.NZ | Hallenstein Glasson Holdings Ltd | 0.18 | 1.11 | 0.99 |
| MESB.KL | Mesb Bhd | 0.06 | 0.19 | 0.18 |
| Low | High | |
| Unlevered beta | 0.21 | 0.35 |
| Relevered beta | 0.25 | 0.42 |
| Adjusted relevered beta | 0.5 | 0.61 |
PADINI.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 PADINI.KL:
cost_of_equity (8.40%) = 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.