SENDAI.KL
Eversendai Corporation Bhd
Price:  
0.45 
MYR
Volume:  
969,600.00
Malaysia | Construction & Engineering
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SENDAI.KL WACC - Weighted Average Cost of Capital

The WACC of Eversendai Corporation Bhd (SENDAI.KL) is 10.6%.

The Cost of Equity of Eversendai Corporation Bhd (SENDAI.KL) is 16.30%.
The Cost of Debt of Eversendai Corporation Bhd (SENDAI.KL) is 8.15%.

Range Selected
Cost of equity 14.00% - 18.60% 16.30%
Tax rate 1.00% - 2.90% 1.95%
Cost of debt 4.00% - 12.30% 8.15%
WACC 7.2% - 14.0% 10.6%
WACC

SENDAI.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 1.49 1.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.00% 18.60%
Tax rate 1.00% 2.90%
Debt/Equity ratio 2.17 2.17
Cost of debt 4.00% 12.30%
After-tax WACC 7.2% 14.0%
Selected WACC 10.6%

SENDAI.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 SENDAI.KL:

cost_of_equity (16.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.49) + 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.