TRIMODE.KL WACC - Weighted Average Cost of Capital

The WACC of Tri-Mode System M Bhd (TRIMODE.KL) is 6.9%.

The Cost of Equity of Tri-Mode System M Bhd (TRIMODE.KL) is 7.95%.

The Cost of Debt of Tri-Mode System M Bhd (TRIMODE.KL) is 8.90%.

	Range	Selected
Cost of equity	6.40% - 9.50%	7.95%
Tax rate	23.70% - 27.90%	25.80%
Cost of debt	5.50% - 12.30%	8.90%
WACC	4.8% - 9.0%	6.9%

WACC

TRIMODE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.38	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.50%

Tax rate	23.70%	27.90%
Debt/Equity ratio	3.09	3.09
Cost of debt	5.50%	12.30%

After-tax WACC	4.8%	9.0%


Selected WACC	6.9%

TRIMODE.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 TRIMODE.KL:

cost_of_equity (7.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.38) + 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.