IFCAMSC.KL WACC - Weighted Average Cost of Capital

The WACC of IFCA MSC Bhd (IFCAMSC.KL) is 10.0%.

The Cost of Equity of IFCA MSC Bhd (IFCAMSC.KL) is 10.05%.

The Cost of Debt of IFCA MSC Bhd (IFCAMSC.KL) is 5.25%.

	Range	Selected
Cost of equity	8.30% - 11.80%	10.05%
Tax rate	23.90% - 35.70%	29.80%
Cost of debt	4.40% - 6.10%	5.25%
WACC	8.3% - 11.7%	10.0%

WACC

IFCAMSC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.66	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.80%

Tax rate	23.90%	35.70%
Debt/Equity ratio	0	0
Cost of debt	4.40%	6.10%

After-tax WACC	8.3%	11.7%


Selected WACC	10.0%

IFCAMSC.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 IFCAMSC.KL:

cost_of_equity (10.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.66) + 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.