TALIWRK.KL WACC - Weighted Average Cost of Capital
The WACC of Taliworks Corporation Bhd (TALIWRK.KL) is 10.3%.
| Range | Selected | |
| Cost of equity | 10.3% - 13.4% | 11.85% |
| Tax rate | 16.6% - 19.0% | 17.8% |
| Cost of debt | 4.7% - 4.9% | 4.8% |
| WACC | 9.1% - 11.6% | 10.3% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.94 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 13.4% |
| Tax rate | 16.6% | 19.0% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.7% | 4.9% |
| After-tax WACC | 9.1% | 11.6% |
| Selected WACC | 10.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TALIWRK.KL | Taliworks Corporation Bhd | 0.23 | 0.63 | 0.53 |
| 300262.SZ | Safbon Water Service Holding Inc Shanghai | 2.72 | 0.53 | 0.16 |
| 688466.SS | GreenTech Environmental Co Ltd | 0.26 | 1.1 | 0.91 |
| DEM.AX | De.mem Ltd | 0.04 | 1.72 | 1.66 |
| PBA.KL | Pba Holdings Bhd | 0.35 | 2.08 | 1.62 |
| PO3.AX | Purifloh Ltd | 0.17 | 1.12 | 0.99 |
| RANHILL.KL | Ranhill Utilities Bhd | 0.56 | 1.2 | 0.82 |
| SALCON.KL | Salcon Bhd | 0.2 | 0.8 | 0.69 |
| SII.VN | Sai Gon Water Infrastructure Corp | 0.71 | 1.65 | 1.05 |
| WHAUP.BK | Wha Utilities and Power PCL | 1.32 | 1.12 | 0.54 |
| Low | High | |
| Unlevered beta | 0.77 | 0.94 |
| Relevered beta | 0.91 | 1.15 |
| Adjusted relevered beta | 0.94 | 1.1 |
TALIWRK.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 TALIWRK.KL:
cost_of_equity (11.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.94) + 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.