MALAKOF.KL WACC - Weighted Average Cost of Capital

The WACC of Malakoff Corporation Bhd (MALAKOF.KL) is 8.9%.

The Cost of Equity of Malakoff Corporation Bhd (MALAKOF.KL) is 11.50%.

The Cost of Debt of Malakoff Corporation Bhd (MALAKOF.KL) is 11.10%.

	Range	Selected
Cost of equity	9.90% - 13.10%	11.50%
Tax rate	29.60% - 33.40%	31.50%
Cost of debt	6.60% - 15.60%	11.10%
WACC	6.5% - 11.3%	8.9%

WACC

MALAKOF.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.89	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.10%

Tax rate	29.60%	33.40%
Debt/Equity ratio	1.84	1.84
Cost of debt	6.60%	15.60%

After-tax WACC	6.5%	11.3%


Selected WACC	8.9%

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 (11.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.89) + 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.