TPC.KL
TPC Plus Bhd
Price:  
0.34 
MYR
Volume:  
51,000.00
Malaysia | Food Products
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TPC.KL WACC - Weighted Average Cost of Capital

The WACC of TPC Plus Bhd (TPC.KL) is 10.2%.

The Cost of Equity of TPC Plus Bhd (TPC.KL) is 14.90%.
The Cost of Debt of TPC Plus Bhd (TPC.KL) is 5.10%.

Range Selected
Cost of equity 13.00% - 16.80% 14.90%
Tax rate 11.10% - 16.50% 13.80%
Cost of debt 5.00% - 5.20% 5.10%
WACC 9.2% - 11.2% 10.2%
WACC

TPC.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 1.35 1.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 16.80%
Tax rate 11.10% 16.50%
Debt/Equity ratio 0.81 0.81
Cost of debt 5.00% 5.20%
After-tax WACC 9.2% 11.2%
Selected WACC 10.2%

TPC.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 TPC.KL:

cost_of_equity (14.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.35) + 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.