MAJOR.BK WACC - Weighted Average Cost of Capital
The WACC of Major Cineplex Group PCL (MAJOR.BK) is 8.8%.
| Range | Selected | |
| Cost of equity | 10.3% - 15.4% | 12.85% |
| Tax rate | 11.4% - 15.2% | 13.3% |
| Cost of debt | 4.0% - 5.7% | 4.85% |
| WACC | 7.2% - 10.5% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.04 | 1.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 15.4% |
| Tax rate | 11.4% | 15.2% |
| Debt/Equity ratio | 0.86 | 0.86 |
| Cost of debt | 4.0% | 5.7% |
| After-tax WACC | 7.2% | 10.5% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAJOR.BK | Major Cineplex Group PCL | 0.86 | 0.79 | 0.45 |
| 000802.SZ | Beijing Jingxi Culture & Tourism Co Ltd | 0.14 | 0.98 | 0.88 |
| 600088.SS | China Television Media Ltd | 0.02 | 1.23 | 1.21 |
| DV8.BK | DV 8 PCL | 0 | 1.77 | 1.77 |
| GRAMMY.BK | GMM Grammy PCL | 0.26 | 0.76 | 0.63 |
| MATCH.BK | Matching Maximize Solution PCL | 0.15 | 0.37 | 0.33 |
| MPIC.BK | M Pictures Entertainment PCL | 0 | 0.99 | 0.99 |
| TVT.BK | TV Thunder PCL | 0.03 | 1.8 | 1.75 |
| WORK.BK | Workpoint Entertainment PCL | 0.09 | 0.61 | 0.57 |
| YGG.BK | YGGDRAZIL Group PCL | 0.16 | 0.66 | 0.58 |
| Low | High | |
| Unlevered beta | 0.61 | 0.92 |
| Relevered beta | 1.06 | 1.6 |
| Adjusted relevered beta | 1.04 | 1.4 |
MAJOR.BK'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 MAJOR.BK:
cost_of_equity (12.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.04) + 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.