RGB.KL
RGB International Bhd
Price:  
0.31 
MYR
Volume:  
25,600,900.00
Malaysia | Hotels, Restaurants & Leisure
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RGB.KL WACC - Weighted Average Cost of Capital

The WACC of RGB International Bhd (RGB.KL) is 9.9%.

The Cost of Equity of RGB International Bhd (RGB.KL) is 9.95%.
The Cost of Debt of RGB International Bhd (RGB.KL) is 4.25%.

Range Selected
Cost of equity 8.80% - 11.10% 9.95%
Tax rate 23.70% - 35.50% 29.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.7% - 11.0% 9.9%
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 0.73 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.10%
Tax rate 23.70% 35.50%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 8.7% 11.0%
Selected WACC 9.9%

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 (9.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.73) + 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.