POS.KL WACC - Weighted Average Cost of Capital
The WACC of Pos Malaysia Bhd (POS.KL) is 10.1%.
| Range | Selected | |
| Cost of equity | 18.9% - 28.6% | 23.75% |
| Tax rate | 1.8% - 5.9% | 3.85% |
| Cost of debt | 5.6% - 7.0% | 6.3% |
| WACC | 8.6% - 11.7% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 2.21 | 3.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18.9% | 28.6% |
| Tax rate | 1.8% | 5.9% |
| Debt/Equity ratio | 3.31 | 3.31 |
| Cost of debt | 5.6% | 7.0% |
| After-tax WACC | 8.6% | 11.7% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| POS.KL | Pos Malaysia Bhd | 3.31 | 1.33 | 0.31 |
| 6123.HK | YTO Express (International) Holdings Ltd | 0.08 | 0.93 | 0.86 |
| 8292.HK | Worldgate Global Logistics Ltd | 0.03 | 0.41 | 0.39 |
| CJCEN.KL | CJ Century Logistics Holdings Bhd | 2.2 | 0.5 | 0.16 |
| GATI.NS | Gati Ltd | 0.19 | 1.4 | 1.18 |
| GDEX.KL | Gdex Bhd | 0.12 | 1.21 | 1.09 |
| MAHLOG.NS | Mahindra Logistics Ltd | 0.29 | 1.84 | 1.44 |
| SEEHUP.KL | See Hup Consolidated Bhd | 0.45 | 0.24 | 0.17 |
| TASCO.KL | TASCO Bhd | 0.8 | 1.49 | 0.84 |
| TCI.NS | Transport Corporation of India Ltd | 0.02 | 1.18 | 1.15 |
| Low | High | |
| Unlevered beta | 0.66 | 0.95 |
| Relevered beta | 2.81 | 4.04 |
| Adjusted relevered beta | 2.21 | 3.04 |
POS.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 POS.KL:
cost_of_equity (23.75%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (2.21) + 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.