WILLOW.KL WACC - Weighted Average Cost of Capital

The WACC of Willowglen Msc Bhd (WILLOW.KL) is 10.8%.

The Cost of Equity of Willowglen Msc Bhd (WILLOW.KL) is 11.35%.

The Cost of Debt of Willowglen Msc Bhd (WILLOW.KL) is 4.70%.

	Range	Selected
Cost of equity	9.90% - 12.80%	11.35%
Tax rate	21.20% - 24.60%	22.90%
Cost of debt	4.40% - 5.00%	4.70%
WACC	9.5% - 12.1%	10.8%

WACC

WILLOW.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.9	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	12.80%

Tax rate	21.20%	24.60%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.40%	5.00%

After-tax WACC	9.5%	12.1%


Selected WACC	10.8%

WILLOW.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 WILLOW.KL:

cost_of_equity (11.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.9) + 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.