SENDAI.KL WACC - Weighted Average Cost of Capital

The WACC of Eversendai Corporation Bhd (SENDAI.KL) is 10.8%.

The Cost of Equity of Eversendai Corporation Bhd (SENDAI.KL) is 16.45%.

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

	Range	Selected
Cost of equity	14.40% - 18.50%	16.45%
Tax rate	1.00% - 2.90%	1.95%
Cost of debt	4.00% - 12.30%	8.15%
WACC	7.5% - 14.1%	10.8%

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	1.55	1.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	18.50%

Tax rate	1.00%	2.90%
Debt/Equity ratio	2.01	2.01
Cost of debt	4.00%	12.30%

After-tax WACC	7.5%	14.1%


Selected WACC	10.8%

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 (16.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.55) + 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.