MAYBULK.KL WACC - Weighted Average Cost of Capital

The WACC of Malaysian Bulk Carriers Bhd (MAYBULK.KL) is 17.9%.

The Cost of Equity of Malaysian Bulk Carriers Bhd (MAYBULK.KL) is 8.10%.

The Cost of Debt of Malaysian Bulk Carriers Bhd (MAYBULK.KL) is 44.85%.

	Range	Selected
Cost of equity	6.20% - 10.00%	8.10%
Tax rate	3.60% - 7.60%	5.60%
Cost of debt	15.60% - 74.10%	44.85%
WACC	8.8% - 27.1%	17.9%

WACC

MAYBULK.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.35	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	10.00%

Tax rate	3.60%	7.60%
Debt/Equity ratio	0.41	0.41
Cost of debt	15.60%	74.10%

After-tax WACC	8.8%	27.1%


Selected WACC	17.9%

MAYBULK.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 MAYBULK.KL:

cost_of_equity (8.10%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.35) + 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.