TGL.KL
Teo Guan Lee Corporation Bhd
Price:  
1.02 
MYR
Volume:  
55,800.00
Malaysia | Specialty Retail
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TGL.KL WACC - Weighted Average Cost of Capital

The WACC of Teo Guan Lee Corporation Bhd (TGL.KL) is 10.2%.

The Cost of Equity of Teo Guan Lee Corporation Bhd (TGL.KL) is 11.10%.
The Cost of Debt of Teo Guan Lee Corporation Bhd (TGL.KL) is 4.25%.

Range Selected
Cost of equity 9.50% - 12.70% 11.10%
Tax rate 21.60% - 23.00% 22.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.7% - 11.6% 10.2%
WACC

TGL.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.83 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 12.70%
Tax rate 21.60% 23.00%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.00% 4.50%
After-tax WACC 8.7% 11.6%
Selected WACC 10.2%

TGL.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 TGL.KL:

cost_of_equity (11.10%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.83) + 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.