MENTIGA.KL
Mentiga Corporation Bhd
Price:  
0.46 
MYR
Volume:  
15,300.00
Malaysia | Paper & Forest Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MENTIGA.KL WACC - Weighted Average Cost of Capital

The WACC of Mentiga Corporation Bhd (MENTIGA.KL) is 6.8%.

The Cost of Equity of Mentiga Corporation Bhd (MENTIGA.KL) is 8.90%.
The Cost of Debt of Mentiga Corporation Bhd (MENTIGA.KL) is 5.50%.

Range Selected
Cost of equity 7.50% - 10.30% 8.90%
Tax rate 6.10% - 16.80% 11.45%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.6% - 8.0% 6.8%
WACC

MENTIGA.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 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.30%
Tax rate 6.10% 16.80%
Debt/Equity ratio 1.05 1.05
Cost of debt 4.00% 7.00%
After-tax WACC 5.6% 8.0%
Selected WACC 6.8%

MENTIGA.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 MENTIGA.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.