MHB.KL
Malaysia Marine and Heavy Engineering Holdings Bhd
Price:  
0.36 
MYR
Volume:  
108,700.00
Malaysia | Energy Equipment & Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MHB.KL WACC - Weighted Average Cost of Capital

The WACC of Malaysia Marine and Heavy Engineering Holdings Bhd (MHB.KL) is 8.7%.

The Cost of Equity of Malaysia Marine and Heavy Engineering Holdings Bhd (MHB.KL) is 10.75%.
The Cost of Debt of Malaysia Marine and Heavy Engineering Holdings Bhd (MHB.KL) is 4.55%.

Range Selected
Cost of equity 9.40% - 12.10% 10.75%
Tax rate 0.10% - 0.90% 0.50%
Cost of debt 4.40% - 4.70% 4.55%
WACC 7.8% - 9.7% 8.7%
WACC

MHB.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.81 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 12.10%
Tax rate 0.10% 0.90%
Debt/Equity ratio 0.47 0.47
Cost of debt 4.40% 4.70%
After-tax WACC 7.8% 9.7%
Selected WACC 8.7%

MHB.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 MHB.KL:

cost_of_equity (10.75%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.81) + 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.