V

VinVest Capital Holdings Bhd
KLSE:VINVEST

Watchlist Manager
VinVest Capital Holdings Bhd
KLSE:VINVEST
Watchlist
Price: 0.06 MYR Market Closed
Market Cap: 58.1m MYR
Have any thoughts about
VinVest Capital Holdings Bhd?
Write Note

Discount Rate

VINVEST Cost of Equity
Discount Rate

7.12%
Cost of Equity
3.87%
Risk-Free Rate
0.8
Beta
4.06%
ERP

VINVEST's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.12%. The Beta, indicating the stock's volatility relative to the market, is 0.8, while the current Risk-Free Rate, based on government bond yields, is 3.87%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.06%.

Loading Cost of Equity History...

VINVEST WACC
Discount Rate

11.38%
WACC
31.17%
Debt Weight
20.78%
Cost of Debt
7.12%
Cost of Equity

VINVEST's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 11.38%. This includes the cost of equity at 7.12%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 20.78%, reflecting the interest rate on VINVEST's debt adjusted for tax benefits. The weight of debt in the capital structure is 31.17%.

Loading WACC History...

What is VINVEST's discount rate?

VINVEST 's current Cost of Equity is 7.12%, while its WACC stands at 11.38%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.

For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.

For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."

How is Cost of Equity for VINVEST calculated?

The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).

This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.

Here is how we calculate the cost of equity for VINVEST

Cost of Equity
7.12%
=
Risk-Free Rate
3.87%
+
Beta
0.8
x
ERP
4.06%

How is WACC for VINVEST calculated?

WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.

The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.

Here is how we calculate WACC for VINVEST

WACC
11.38%
=
Cost of Equity
7.12%
x
Equity Weight
69%
+
Cost of Debt
20.78%
x
Debt Weight
31%
Back to Top
ALPHA SPREAD
Follow us
Join more than 210,900+ value investors using Alpha Spread
Create a free account
or see our plans & pricing

Company

About Us Careers Pricing Affiliate Program Terms of Service Privacy Policy

Help

What is Intrinsic Value? Help Center Contact Us

Tools

Stock Screener Intrinsic Value Calculator DCF Value Calculator Discount Rate Calculator

Stocks

Most Undervalued Stocks Wide Economic Moat Stocks High Profitability Stocks High Solvency Stocks Most Popular Stocks

© 2024 Alpha Spread Limited. All Rights Reserved.

www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.