MAHSING.KL WACC - Weighted Average Cost of Capital

The WACC of Mah Sing Group Bhd (MAHSING.KL) is 7.2%.

The Cost of Equity of Mah Sing Group Bhd (MAHSING.KL) is 10.15%.

The Cost of Debt of Mah Sing Group Bhd (MAHSING.KL) is 4.25%.

	Range	Selected
Cost of equity	9.00% - 11.30%	10.15%
Tax rate	29.20% - 30.40%	29.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.5% - 8.0%	7.2%

WACC

MAHSING.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.75	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.30%

Tax rate	29.20%	30.40%
Debt/Equity ratio	0.67	0.67
Cost of debt	4.00%	4.50%

After-tax WACC	6.5%	8.0%


Selected WACC	7.2%

MAHSING.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 MAHSING.KL:

cost_of_equity (10.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.75) + 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.