TIENWAH.KL WACC - Weighted Average Cost of Capital

The WACC of Tien Wah Press Holdings Bhd (TIENWAH.KL) is 9.8%.

The Cost of Equity of Tien Wah Press Holdings Bhd (TIENWAH.KL) is 10.45%.

The Cost of Debt of Tien Wah Press Holdings Bhd (TIENWAH.KL) is 6.45%.

	Range	Selected
Cost of equity	9.10% - 11.80%	10.45%
Tax rate	19.40% - 24.20%	21.80%
Cost of debt	4.40% - 8.50%	6.45%
WACC	8.4% - 11.2%	9.8%

WACC

TIENWAH.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.77	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.80%

Tax rate	19.40%	24.20%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.40%	8.50%

After-tax WACC	8.4%	11.2%


Selected WACC	9.8%

TIENWAH.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 TIENWAH.KL:

cost_of_equity (10.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.77) + 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.