MAHSING.KL WACC - Weighted Average Cost of Capital

The WACC of Mah Sing Group Bhd (MAHSING.KL) is 8.6%.

The Cost of Equity of Mah Sing Group Bhd (MAHSING.KL) is 11.05%.

The Cost of Debt of Mah Sing Group Bhd (MAHSING.KL) is 4.85%.

	Range	Selected
Cost of equity	9.80% - 12.30%	11.05%
Tax rate	29.20% - 30.40%	29.80%
Cost of debt	4.50% - 5.20%	4.85%
WACC	7.7% - 9.6%	8.6%

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	0.88	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.30%

Tax rate	29.20%	30.40%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.50%	5.20%

After-tax WACC	7.7%	9.6%


Selected WACC	8.6%

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 (11.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.88) + 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.