The WACC of T7 Global Bhd (T7GLOBAL.KL) is 8.9%.
| Range | Selected | |
| Cost of equity | 14.90% - 18.60% | 16.75% |
| Tax rate | 33.40% - 38.30% | 35.85% |
| Cost of debt | 7.40% - 14.10% | 10.75% |
| WACC | 7.0% - 10.7% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.62 | 1.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.90% | 18.60% |
| Tax rate | 33.40% | 38.30% |
| Debt/Equity ratio | 3.81 | 3.81 |
| Cost of debt | 7.40% | 14.10% |
| After-tax WACC | 7.0% | 10.7% |
| Selected WACC | 8.9% | |
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 (16.75%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.62) + 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.