MALEE.BK WACC - Weighted Average Cost of Capital

The WACC of Malee Group PCL (MALEE.BK) is 8.4%.

The Cost of Equity of Malee Group PCL (MALEE.BK) is 10.85%.

The Cost of Debt of Malee Group PCL (MALEE.BK) is 4.25%.

	Range	Selected
Cost of equity	9.00% - 12.70%	10.85%
Tax rate	22.40% - 36.50%	29.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.1% - 9.6%	8.4%

WACC

MALEE.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.86	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.70%

Tax rate	22.40%	36.50%
Debt/Equity ratio	0.46	0.46
Cost of debt	4.00%	4.50%

After-tax WACC	7.1%	9.6%


Selected WACC	8.4%

MALEE.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 MALEE.BK:

cost_of_equity (10.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.86) + 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.