MBL.KL WACC - Weighted Average Cost of Capital
The WACC of Muar Ban Lee Group Bhd (MBL.KL) is 11.8%.
| Range | Selected | |
| Cost of equity | 10.9% - 15.2% | 13.05% |
| Tax rate | 24.9% - 26.6% | 25.75% |
| Cost of debt | 4.4% - 6.2% | 5.3% |
| WACC | 9.8% - 13.7% | 11.8% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.04 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 15.2% |
| Tax rate | 24.9% | 26.6% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.4% | 6.2% |
| After-tax WACC | 9.8% | 13.7% |
| Selected WACC | 11.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MBL.KL | Muar Ban Lee Group Bhd | 0.16 | 0.35 | 0.31 |
| APB.KL | APB Resources Bhd | 6.44 | -0.14 | -0.03 |
| EWEIN.KL | Ewein Bhd | 0.19 | 1.38 | 1.21 |
| FITTERS.KL | Fitters Diversified Bhd | 0.33 | 1.01 | 0.81 |
| HLT.KL | Hlt Global Bhd | 0 | 1.5 | 1.5 |
| JASKITA.KL | Jasa Kita Bhd | 0 | 1.65 | 1.65 |
| KEINHIN.KL | Kein Hing International Bhd | 0.4 | 0.76 | 0.58 |
| KOBAY.KL | Kobay Technology Bhd | 0.31 | 1.84 | 1.5 |
| RESINTC.KL | Resintech Bhd | 0.57 | 1.47 | 1.03 |
| TECFAST.KL | Techfast Holdings Bhd | 0.01 | 1.87 | 1.86 |
| Low | High | |
| Unlevered beta | 0.94 | 1.32 |
| Relevered beta | 1.06 | 1.48 |
| Adjusted relevered beta | 1.04 | 1.32 |
MBL.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 MBL.KL:
cost_of_equity (13.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.04) + 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.