TIENWAH.KL
Tien Wah Press Holdings Bhd
Price:  
0.85 
MYR
Volume:  
900.00
Malaysia | Commercial Services & Supplies
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TIENWAH.KL WACC - Weighted Average Cost of Capital

The WACC of Tien Wah Press Holdings Bhd (TIENWAH.KL) is 10.1%.

The Cost of Equity of Tien Wah Press Holdings Bhd (TIENWAH.KL) is 10.55%.
The Cost of Debt of Tien Wah Press Holdings Bhd (TIENWAH.KL) is 8.35%.

Range Selected
Cost of equity 9.20% - 11.90% 10.55%
Tax rate 19.40% - 24.20% 21.80%
Cost of debt 4.70% - 12.00% 8.35%
WACC 8.6% - 11.6% 10.1%
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 0.79 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 11.90%
Tax rate 19.40% 24.20%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.70% 12.00%
After-tax WACC 8.6% 11.6%
Selected WACC 10.1%

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 (10.55%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.79) + 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.