RUBEREX.KL WACC - Weighted Average Cost of Capital

The WACC of Rubberex Corporation M Bhd (RUBEREX.KL) is 7.9%.

The Cost of Equity of Rubberex Corporation M Bhd (RUBEREX.KL) is 7.80%.

The Cost of Debt of Rubberex Corporation M Bhd (RUBEREX.KL) is 13.50%.

	Range	Selected
Cost of equity	6.70% - 8.90%	7.80%
Tax rate	17.20% - 19.10%	18.15%
Cost of debt	7.00% - 20.00%	13.50%
WACC	6.7% - 9.0%	7.9%

WACC

RUBEREX.KL WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	7.3%	8.3%
Adjusted beta	0.39	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	8.90%

Tax rate	17.20%	19.10%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.00%	20.00%

After-tax WACC	6.7%	9.0%


Selected WACC	7.9%

RUBEREX.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 RUBEREX.KL:

cost_of_equity (7.80%) = risk_free_rate (4.15%) + equity_risk_premium (7.80%) * adjusted_beta (0.39) + 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.