T7GLOBAL.KL WACC - Weighted Average Cost of Capital

The WACC of T7 Global Bhd (T7GLOBAL.KL) is 6.1%.

The Cost of Equity of T7 Global Bhd (T7GLOBAL.KL) is 19.00%.

The Cost of Debt of T7 Global Bhd (T7GLOBAL.KL) is 6.50%.

	Range	Selected
Cost of equity	16.20% - 21.80%	19.00%
Tax rate	36.10% - 39.00%	37.55%
Cost of debt	5.60% - 7.40%	6.50%
WACC	5.3% - 6.9%	6.1%

WACC

T7GLOBAL.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.81	2.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.20%	21.80%

Tax rate	36.10%	39.00%
Debt/Equity ratio	6.28	6.28
Cost of debt	5.60%	7.40%

After-tax WACC	5.3%	6.9%


Selected WACC	6.1%

T7GLOBAL.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 T7GLOBAL.KL:

cost_of_equity (19.00%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.81) + 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.