MI.KL
MI Technovation Bhd
Price:  
2.02 
MYR
Volume:  
1,928,900.00
Malaysia | Semiconductors & Semiconductor Equipment
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MI.KL WACC - Weighted Average Cost of Capital

The WACC of MI Technovation Bhd (MI.KL) is 14.4%.

The Cost of Equity of MI Technovation Bhd (MI.KL) is 14.70%.
The Cost of Debt of MI Technovation Bhd (MI.KL) is 4.25%.

Range Selected
Cost of equity 13.30% - 16.10% 14.70%
Tax rate 9.40% - 15.10% 12.25%
Cost of debt 4.00% - 4.50% 4.25%
WACC 13.1% - 15.7% 14.4%
WACC

MI.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 1.39 1.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.30% 16.10%
Tax rate 9.40% 15.10%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 4.50%
After-tax WACC 13.1% 15.7%
Selected WACC 14.4%

MI.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 MI.KL:

cost_of_equity (14.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.39) + 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.