MIL.AX WACC - Weighted Average Cost of Capital
The WACC of Millennium Services Group Ltd (MIL.AX) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.2% | 7.95% |
| Tax rate | 23.9% - 35.3% | 29.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.2% - 8.5% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.53 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.2% |
| Tax rate | 23.9% | 35.3% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.2% | 8.5% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIL.AX | Millennium Services Group Ltd | 0.18 | 0.09 | 0.08 |
| 049720.KQ | Koryo Credit Information Co Ltd | 0.15 | 0.07 | 0.07 |
| 3461.T | Palma Co Ltd | 0.2 | 1.05 | 0.93 |
| 4659.T | AJIS Co Ltd | 0.01 | 0.25 | 0.25 |
| 6093.T | Escrow Agent Japan Inc | 0.01 | 0.77 | 0.77 |
| 7087.T | Willtec Co Ltd | 0.14 | 0.53 | 0.49 |
| 8201.HK | PPS International (Holdings) Ltd | 0.65 | 0.39 | 0.27 |
| 9780.T | Harima B.Stem Corp | 0.11 | 0.48 | 0.45 |
| MAD.AX | Mader Group Ltd | 0.05 | 0.77 | 0.74 |
| NAM.AX | Namoi Cotton Ltd | 0.2 | 0.09 | 0.08 |
| Low | High | |
| Unlevered beta | 0.26 | 0.46 |
| Relevered beta | 0.3 | 0.52 |
| Adjusted relevered beta | 0.53 | 0.68 |
MIL.AX'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 MIL.AX:
cost_of_equity (7.95%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.