VIZIONE.KL WACC - Weighted Average Cost of Capital

The WACC of Vizione Holdings Bhd (VIZIONE.KL) is 7.9%.

The Cost of Equity of Vizione Holdings Bhd (VIZIONE.KL) is 10.40%.

The Cost of Debt of Vizione Holdings Bhd (VIZIONE.KL) is 8.15%.

	Range	Selected
Cost of equity	8.00% - 12.80%	10.40%
Tax rate	20.60% - 38.70%	29.65%
Cost of debt	7.00% - 9.30%	8.15%
WACC	6.7% - 9.1%	7.9%

WACC

VIZIONE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.61	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	12.80%

Tax rate	20.60%	38.70%
Debt/Equity ratio	1.12	1.12
Cost of debt	7.00%	9.30%

After-tax WACC	6.7%	9.1%


Selected WACC	7.9%

VIZIONE.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 VIZIONE.KL:

cost_of_equity (10.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.61) + 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.