VELESTO.KL
Velesto Energy Bhd
Price:  
0.18 
MYR
Volume:  
57,786,700.00
Malaysia | Energy Equipment & Services
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VELESTO.KL WACC - Weighted Average Cost of Capital

The WACC of Velesto Energy Bhd (VELESTO.KL) is 9.5%.

The Cost of Equity of Velesto Energy Bhd (VELESTO.KL) is 10.05%.
The Cost of Debt of Velesto Energy Bhd (VELESTO.KL) is 5.45%.

Range Selected
Cost of equity 8.80% - 11.30% 10.05%
Tax rate 14.70% - 19.60% 17.15%
Cost of debt 4.70% - 6.20% 5.45%
WACC 8.3% - 10.6% 9.5%
WACC

VELESTO.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.73 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.30%
Tax rate 14.70% 19.60%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.70% 6.20%
After-tax WACC 8.3% 10.6%
Selected WACC 9.5%

VELESTO.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 VELESTO.KL:

cost_of_equity (10.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.73) + 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.