MINDA.KL WACC - Weighted Average Cost of Capital

The WACC of Minda Global Bhd (MINDA.KL) is 9.9%.

The Cost of Equity of Minda Global Bhd (MINDA.KL) is 11.45%.

The Cost of Debt of Minda Global Bhd (MINDA.KL) is 9.55%.

	Range	Selected
Cost of equity	8.30% - 14.60%	11.45%
Tax rate	14.00% - 16.50%	15.25%
Cost of debt	9.20% - 9.90%	9.55%
WACC	8.1% - 11.7%	9.9%

WACC

MINDA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	7.3%	8.3%
Adjusted beta	0.6	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	14.60%

Tax rate	14.00%	16.50%
Debt/Equity ratio	0.85	0.85
Cost of debt	9.20%	9.90%

After-tax WACC	8.1%	11.7%


Selected WACC	9.9%

MINDA.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 MINDA.KL:

cost_of_equity (11.45%) = risk_free_rate (4.15%) + equity_risk_premium (7.80%) * adjusted_beta (0.6) + 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.