REX.KL
Rex Industry Bhd
Price:  
0.11 
MYR
Volume:  
311,200
Malaysia | Food Products

REX.KL WACC - Weighted Average Cost of Capital

The WACC of Rex Industry Bhd (REX.KL) is 7.2%.

The Cost of Equity of Rex Industry Bhd (REX.KL) is 8.3%.
The Cost of Debt of Rex Industry Bhd (REX.KL) is 4.8%.

RangeSelected
Cost of equity6.7% - 9.9%8.3%
Tax rate8.5% - 20.0%14.25%
Cost of debt4.6% - 5.0%4.8%
WACC6.0% - 8.3%7.2%
WACC

REX.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.420.65
Additional risk adjustments0.0%0.5%
Cost of equity6.7%9.9%
Tax rate8.5%20.0%
Debt/Equity ratio
0.360.36
Cost of debt4.6%5.0%
After-tax WACC6.0%8.3%
Selected WACC7.2%

REX.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 REX.KL:

cost_of_equity (8.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.42) + 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.