TSRCAP.KL WACC - Weighted Average Cost of Capital

The WACC of TSR Capital Bhd (TSRCAP.KL) is 8.1%.

The Cost of Equity of TSR Capital Bhd (TSRCAP.KL) is 11.60%.

The Cost of Debt of TSR Capital Bhd (TSRCAP.KL) is 4.50%.

	Range	Selected
Cost of equity	9.70% - 13.50%	11.60%
Tax rate	10.30% - 17.20%	13.75%
Cost of debt	4.10% - 4.90%	4.50%
WACC	7.0% - 9.2%	8.1%

WACC

TSRCAP.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.87	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.50%

Tax rate	10.30%	17.20%
Debt/Equity ratio	0.82	0.82
Cost of debt	4.10%	4.90%

After-tax WACC	7.0%	9.2%


Selected WACC	8.1%

TSRCAP.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 TSRCAP.KL:

cost_of_equity (11.60%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.87) + 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.