MAHSING.KL
Mah Sing Group Bhd
Price:  
1.19 
MYR
Volume:  
5,362,200.00
Malaysia | Real Estate Management & Development
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MAHSING.KL WACC - Weighted Average Cost of Capital

The WACC of Mah Sing Group Bhd (MAHSING.KL) is 7.3%.

The Cost of Equity of Mah Sing Group Bhd (MAHSING.KL) is 10.20%.
The Cost of Debt of Mah Sing Group Bhd (MAHSING.KL) is 4.25%.

Range Selected
Cost of equity 8.90% - 11.50% 10.20%
Tax rate 29.20% - 30.40% 29.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.4% - 8.1% 7.3%
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 0.74 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.50%
Tax rate 29.20% 30.40%
Debt/Equity ratio 0.68 0.68
Cost of debt 4.00% 4.50%
After-tax WACC 6.4% 8.1%
Selected WACC 7.3%

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 (10.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.74) + 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.