WTK.KL WACC - Weighted Average Cost of Capital

The WACC of W T K Holdings Bhd (WTK.KL) is 9.5%.

The Cost of Equity of W T K Holdings Bhd (WTK.KL) is 14.80%.

The Cost of Debt of W T K Holdings Bhd (WTK.KL) is 6.10%.

	Range	Selected
Cost of equity	12.70% - 16.90%	14.80%
Tax rate	13.90% - 16.60%	15.25%
Cost of debt	5.20% - 7.00%	6.10%
WACC	8.2% - 10.9%	9.5%

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	1.29	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	16.90%

Tax rate	13.90%	16.60%
Debt/Equity ratio	1.2	1.2
Cost of debt	5.20%	7.00%

After-tax WACC	8.2%	10.9%


Selected WACC	9.5%

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 (14.80%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.29) + 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.