TAWIN.KL WACC - Weighted Average Cost of Capital

The WACC of Ta Win Holdings Bhd (TAWIN.KL) is 8.6%.

The Cost of Equity of Ta Win Holdings Bhd (TAWIN.KL) is 14.40%.

The Cost of Debt of Ta Win Holdings Bhd (TAWIN.KL) is 5.90%.

	Range	Selected
Cost of equity	9.40% - 19.40%	14.40%
Tax rate	1.40% - 9.60%	5.50%
Cost of debt	4.80% - 7.00%	5.90%
WACC	6.4% - 10.9%	8.6%

WACC

TAWIN.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.82	1.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	19.40%

Tax rate	1.40%	9.60%
Debt/Equity ratio	1.88	1.88
Cost of debt	4.80%	7.00%

After-tax WACC	6.4%	10.9%


Selected WACC	8.6%

TAWIN.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 TAWIN.KL:

cost_of_equity (14.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.82) + 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.