RGB.KL
RGB International Bhd
Price:  
0.35 
MYR
Volume:  
5,414,600.00
Malaysia | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

RGB.KL WACC - Weighted Average Cost of Capital

The WACC of RGB International Bhd (RGB.KL) is 10.0%.

The Cost of Equity of RGB International Bhd (RGB.KL) is 10.05%.
The Cost of Debt of RGB International Bhd (RGB.KL) is 5.00%.

Range Selected
Cost of equity 8.70% - 11.40% 10.05%
Tax rate 29.70% - 36.90% 33.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.7% - 11.3% 10.0%
WACC

RGB.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.72 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.40%
Tax rate 29.70% 36.90%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 8.7% 11.3%
Selected WACC 10.0%

RGB.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 RGB.KL:

cost_of_equity (10.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.72) + 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.