MATRIX.KL
Matrix Concepts Holdings Bhd
Price:  
1.34 
MYR
Volume:  
2,337,200.00
Malaysia | Real Estate Management & Development
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MATRIX.KL WACC - Weighted Average Cost of Capital

The WACC of Matrix Concepts Holdings Bhd (MATRIX.KL) is 8.1%.

The Cost of Equity of Matrix Concepts Holdings Bhd (MATRIX.KL) is 8.95%.
The Cost of Debt of Matrix Concepts Holdings Bhd (MATRIX.KL) is 5.50%.

Range Selected
Cost of equity 8.00% - 9.90% 8.95%
Tax rate 24.00% - 25.40% 24.70%
Cost of debt 4.40% - 6.60% 5.50%
WACC 7.2% - 9.0% 8.1%
WACC

MATRIX.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.62 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 9.90%
Tax rate 24.00% 25.40%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.40% 6.60%
After-tax WACC 7.2% 9.0%
Selected WACC 8.1%

MATRIX.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 MATRIX.KL:

cost_of_equity (8.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.62) + 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.