WTK.KL WACC - Weighted Average Cost of Capital

The WACC of W T K Holdings Bhd (WTK.KL) is 8.0%.

The Cost of Equity of W T K Holdings Bhd (WTK.KL) is 11.25%.

The Cost of Debt of W T K Holdings Bhd (WTK.KL) is 5.50%.

	Range	Selected
Cost of equity	9.60% - 12.90%	11.25%
Tax rate	17.80% - 25.50%	21.65%
Cost of debt	4.70% - 6.30%	5.50%
WACC	7.0% - 9.1%	8.0%

WACC

WTK.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.85	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.90%

Tax rate	17.80%	25.50%
Debt/Equity ratio	0.86	0.86
Cost of debt	4.70%	6.30%

After-tax WACC	7.0%	9.1%


Selected WACC	8.0%

WTK.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 WTK.KL:

cost_of_equity (11.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.85) + 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.