PENSONI.KL WACC - Weighted Average Cost of Capital

The WACC of Pensonic Holdings Bhd (PENSONI.KL) is 7.3%.

The Cost of Equity of Pensonic Holdings Bhd (PENSONI.KL) is 6.80%.

The Cost of Debt of Pensonic Holdings Bhd (PENSONI.KL) is 10.20%.

	Range	Selected
Cost of equity	5.40% - 8.20%	6.80%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	4.80% - 15.60%	10.20%
WACC	4.5% - 10.1%	7.3%

WACC

PENSONI.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.24	0.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	8.20%

Tax rate	24.00%	24.00%
Debt/Equity ratio	1.08	1.08
Cost of debt	4.80%	15.60%

After-tax WACC	4.5%	10.1%


Selected WACC	7.3%

PENSONI.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 PENSONI.KL:

cost_of_equity (6.80%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.24) + 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.