TIGER.KL WACC - Weighted Average Cost of Capital
The WACC of Tiger Synergy Bhd (TIGER.KL) is 8.6%.
| Range | Selected | |
| Cost of equity | 6.8% - 10.6% | 8.7% |
| Tax rate | 1.0% - 2.0% | 1.5% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.8% - 10.4% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.9% | 6.9% |
| Adjusted beta | 0.43 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 10.6% |
| Tax rate | 1.0% | 2.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.8% | 10.4% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TIGER.KL | Tiger Synergy Bhd | 0.07 | 0.91 | 0.86 |
| MAGNA.KL | Magna Prima Bhd | 0 | -0.25 | -0.25 |
| MERIDIAN.KL | Meridian Bhd | 3.9 | 0.19 | 0.04 |
| MJPERAK.KL | Majuperak Holdings Bhd | 0.37 | 0.92 | 0.67 |
| MUH.KL | Multi-Usage Holdings Bhd | 0.01 | 0.53 | 0.53 |
| OCR.KL | Ocr Group Bhd | 1.59 | 1.27 | 0.49 |
| SNTORIA.KL | Sentoria Group Bhd | 145.21 | -2.76 | -0.02 |
| TALAMT.KL | Talam Transform Bhd | 0.38 | 0.14 | 0.1 |
| THRIVEN.KL | Thriven Global Bhd | 1.47 | 1.31 | 0.54 |
| VIZIONE.KL | Vizione Holdings Bhd | 1.06 | 2.97 | 1.46 |
| Low | High | |
| Unlevered beta | 0.34 | 0.53 |
| Relevered beta | 0.15 | 0.67 |
| Adjusted relevered beta | 0.43 | 0.78 |
TIGER.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 TIGER.KL:
cost_of_equity (8.70%) = risk_free_rate (4.45%) + equity_risk_premium (6.40%) * adjusted_beta (0.43) + 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.