WPRTS.KL WACC - Weighted Average Cost of Capital
The WACC of Westports Holdings Bhd (WPRTS.KL) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.7% - 9.9% | 8.8% |
| Tax rate | 22.4% - 23.3% | 22.85% |
| Cost of debt | 4.4% - 4.7% | 4.55% |
| WACC | 7.4% - 9.6% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.57 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 9.9% |
| Tax rate | 22.4% | 23.3% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.4% | 4.7% |
| After-tax WACC | 7.4% | 9.6% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WPRTS.KL | Westports Holdings Bhd | 0.06 | 0.47 | 0.45 |
| 000582.SZ | Beibu Gulf Port Co Ltd | 0.65 | 0.46 | 0.31 |
| 601326.SS | Qinhuangdao Port Co Ltd | 0.28 | 0.69 | 0.56 |
| 601880.SS | Liaoning Port Co Ltd | 0.34 | 1.05 | 0.83 |
| AIRPORT.KL | Malaysia Airports Holdings Bhd | 0.26 | 0.29 | 0.24 |
| BIPORT.KL | Bintulu Port Holdings Bhd | 0.47 | -0.14 | -0.1 |
| MMCCORP.KL | MMC Corporation Bhd | 2 | 1.24 | 0.49 |
| POT.NZ | Port of Tauranga Ltd | 0.11 | 0.4 | 0.36 |
| PRKCORP.KL | Perak Corporation Bhd | 4.17 | 0.92 | 0.22 |
| SURIA.KL | Suria Capital Holdings Bhd | 0.04 | 0.72 | 0.7 |
| Low | High | |
| Unlevered beta | 0.34 | 0.46 |
| Relevered beta | 0.36 | 0.49 |
| Adjusted relevered beta | 0.57 | 0.66 |
WPRTS.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 WPRTS.KL:
cost_of_equity (8.80%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.57) + 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.