RUBEREX.KL WACC - Weighted Average Cost of Capital
The WACC of Rubberex Corporation M Bhd (RUBEREX.KL) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.7% - 8.9% | 7.8% |
| Tax rate | 17.2% - 19.1% | 18.15% |
| Cost of debt | 7.0% - 20.0% | 13.5% |
| WACC | 6.7% - 9.0% | 7.9% |
| 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 | 6.7% | 8.9% |
| Tax rate | 17.2% | 19.1% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 20.0% |
| After-tax WACC | 6.7% | 9.0% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RUBEREX.KL | Rubberex Corporation M Bhd | 0.02 | 1.5 | 1.47 |
| 004540.KS | Kleannara Co Ltd | 3.98 | 0.63 | 0.15 |
| 012690.KS | Monalisa Co Ltd | 0.01 | 0.2 | 0.19 |
| 1730.TW | Farcent Enterprise Co Ltd | 0 | 0.19 | 0.19 |
| 2023.HK | China Ludao Technology Company Ltd | 2.09 | -0.16 | -0.06 |
| 3895.T | Havix Corp | 0.35 | 0.42 | 0.33 |
| 8512.HK | Hyfusin Group Holdings Ltd | 0.06 | 0.59 | 0.56 |
| LIX.VN | LIX Detergent JSC | 0.03 | 0.72 | 0.7 |
| NTPM.KL | NTPM Holdings Bhd | 1.15 | 0.36 | 0.19 |
| PAOS.KL | Paos Holdings Bhd | 0.01 | 0.94 | 0.93 |
| Low | High | |
| Unlevered beta | 0.19 | 0.42 |
| Relevered beta | 0.09 | 0.22 |
| Adjusted relevered beta | 0.39 | 0.48 |
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.