MAXIM.KL WACC - Weighted Average Cost of Capital
The WACC of Maxim Global Bhd (MAXIM.KL) is 7.2%.
| Range | Selected | |
| Cost of equity | 8.7% - 11.2% | 9.95% |
| Tax rate | 26.7% - 28.0% | 27.35% |
| Cost of debt | 5.0% - 8.5% | 6.75% |
| WACC | 6.0% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.72 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 11.2% |
| Tax rate | 26.7% | 28.0% |
| Debt/Equity ratio | 1.2 | 1.2 |
| Cost of debt | 5.0% | 8.5% |
| After-tax WACC | 6.0% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAXIM.KL | Maxim Global Bhd | 1.2 | -0.98 | -0.52 |
| CRESNDO.KL | Crescendo Corporation Bhd | 0.19 | 0.92 | 0.81 |
| EUPE.KL | Eupe Corporation Bhd | 2.05 | 0.49 | 0.2 |
| GLOMAC.KL | Glomac Bhd | 0.95 | 0.57 | 0.34 |
| GOB.KL | Global Oriental Bhd | 3.96 | 0.68 | 0.18 |
| HUAYANG.KL | Hua Yang Bhd | 2.08 | 1.01 | 0.4 |
| IBRACO.KL | Ibraco Bhd | 0.66 | 0.56 | 0.38 |
| KSL.KL | KSL Holdings Bhd | 0.24 | 1.06 | 0.9 |
| MCT.KL | MCT Bhd | 0.78 | 0.67 | 0.43 |
| SYMLIFE.KL | Symphony Life Bhd | 0.95 | 0.47 | 0.28 |
| Low | High | |
| Unlevered beta | 0.31 | 0.39 |
| Relevered beta | 0.58 | 0.73 |
| Adjusted relevered beta | 0.72 | 0.82 |
MAXIM.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 MAXIM.KL:
cost_of_equity (9.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.72) + 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.