MAXIM.KL
Maxim Global Bhd
Price:  
0.37 
MYR
Volume:  
42,800.00
Malaysia | Real Estate Management & Development
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MAXIM.KL WACC - Weighted Average Cost of Capital

The WACC of Maxim Global Bhd (MAXIM.KL) is 7.3%.

The Cost of Equity of Maxim Global Bhd (MAXIM.KL) is 10.15%.
The Cost of Debt of Maxim Global Bhd (MAXIM.KL) is 6.75%.

Range Selected
Cost of equity 8.90% - 11.40% 10.15%
Tax rate 26.70% - 28.00% 27.35%
Cost of debt 5.00% - 8.50% 6.75%
WACC 6.0% - 8.6% 7.3%
WACC

MAXIM.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.74 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.40%
Tax rate 26.70% 28.00%
Debt/Equity ratio 1.19 1.19
Cost of debt 5.00% 8.50%
After-tax WACC 6.0% 8.6%
Selected WACC 7.3%

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 (10.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.74) + 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.