TPC.KL WACC - Weighted Average Cost of Capital

The WACC of TPC Plus Bhd (TPC.KL) is 10.4%.

The Cost of Equity of TPC Plus Bhd (TPC.KL) is 15.25%.

The Cost of Debt of TPC Plus Bhd (TPC.KL) is 5.05%.

	Range	Selected
Cost of equity	13.10% - 17.40%	15.25%
Tax rate	11.10% - 16.50%	13.80%
Cost of debt	4.90% - 5.20%	5.05%
WACC	9.2% - 11.6%	10.4%

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	1.36	1.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	17.40%

Tax rate	11.10%	16.50%
Debt/Equity ratio	0.81	0.81
Cost of debt	4.90%	5.20%

After-tax WACC	9.2%	11.6%


Selected WACC	10.4%

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 (15.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.36) + 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.