MALAKOF.KL WACC - Weighted Average Cost of Capital
The WACC of Malakoff Corporation Bhd (MALAKOF.KL) is 8.5%.
| Range | Selected | |
| Cost of equity | 10.7% - 14.0% | 12.35% |
| Tax rate | 29.6% - 33.4% | 31.5% |
| Cost of debt | 6.6% - 12.3% | 9.45% |
| WACC | 6.7% - 10.2% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.01 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 14.0% |
| Tax rate | 29.6% | 33.4% |
| Debt/Equity ratio | 1.89 | 1.89 |
| Cost of debt | 6.6% | 12.3% |
| After-tax WACC | 6.7% | 10.2% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MALAKOF.KL | Malakoff Corporation Bhd | 1.89 | 1.26 | 0.55 |
| 000767.SZ | Jinneng Holding Shanxi Electric Power Co Ltd | 4.27 | 1.18 | 0.3 |
| 000875.SZ | Jilin Electric Power Co Ltd | 2.55 | 1.04 | 0.38 |
| 600726.SS | Huadian Energy Co Ltd | 0.74 | 0.96 | 0.64 |
| 600744.SS | Datang HuaYin Electric Power Co Ltd | 2.14 | 1.06 | 0.43 |
| EDEN.KL | Eden Inc. Bhd | 0.2 | 0.62 | 0.55 |
| MFCB.KL | Mega First Corporation Bhd | 0.29 | 0.37 | 0.31 |
| NLCINDIA.NS | NLC India Ltd | 0.73 | 1.66 | 1.11 |
| OGKB.ME | OGK-2 PAO | 0.62 | 0.24 | 0.17 |
| POW.VN | Petrovietnam Power Corp | 0.76 | 0.94 | 0.62 |
| Low | High | |
| Unlevered beta | 0.41 | 0.55 |
| Relevered beta | 1.01 | 1.25 |
| Adjusted relevered beta | 1.01 | 1.17 |
MALAKOF.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 MALAKOF.KL:
cost_of_equity (12.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.01) + 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.