MENANG.KL WACC - Weighted Average Cost of Capital

The WACC of Menang Corporation (M) Bhd (MENANG.KL) is 7.4%.

The Cost of Equity of Menang Corporation (M) Bhd (MENANG.KL) is 8.90%.

The Cost of Debt of Menang Corporation (M) Bhd (MENANG.KL) is 5.30%.

	Range	Selected
Cost of equity	7.50% - 10.30%	8.90%
Tax rate	21.10% - 23.80%	22.45%
Cost of debt	5.30% - 5.30%	5.30%
WACC	6.5% - 8.4%	7.4%

WACC

MENANG.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.54	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.30%

Tax rate	21.10%	23.80%
Debt/Equity ratio	0.44	0.44
Cost of debt	5.30%	5.30%

After-tax WACC	6.5%	8.4%


Selected WACC	7.4%

MENANG.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 MENANG.KL:

cost_of_equity (8.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.54) + 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.