WTK.KL WACC - Weighted Average Cost of Capital

The WACC of W T K Holdings Bhd (WTK.KL) is 9.9%.

The Cost of Equity of W T K Holdings Bhd (WTK.KL) is 15.40%.

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

	Range	Selected
Cost of equity	13.20% - 17.60%	15.40%
Tax rate	13.90% - 16.60%	15.25%
Cost of debt	5.20% - 7.00%	6.10%
WACC	8.5% - 11.3%	9.9%

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	1.37	1.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	17.60%

Tax rate	13.90%	16.60%
Debt/Equity ratio	1.17	1.17
Cost of debt	5.20%	7.00%

After-tax WACC	8.5%	11.3%


Selected WACC	9.9%

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 (15.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.37) + 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.