TRC.KL WACC - Weighted Average Cost of Capital

The WACC of TRC Synergy Bhd (TRC.KL) is 9.8%.

The Cost of Equity of TRC Synergy Bhd (TRC.KL) is 12.70%.

The Cost of Debt of TRC Synergy Bhd (TRC.KL) is 6.15%.

	Range	Selected
Cost of equity	11.10% - 14.30%	12.70%
Tax rate	23.60% - 25.10%	24.35%
Cost of debt	5.40% - 6.90%	6.15%
WACC	8.6% - 11.1%	9.8%

WACC

TRC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.07	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	14.30%

Tax rate	23.60%	25.10%
Debt/Equity ratio	0.56	0.56
Cost of debt	5.40%	6.90%

After-tax WACC	8.6%	11.1%


Selected WACC	9.8%

TRC.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 TRC.KL:

cost_of_equity (12.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.07) + 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.