MINDA.KL WACC - Weighted Average Cost of Capital
The WACC of Minda Global Bhd (MINDA.KL) is 9.9%.
| Range | Selected | |
| Cost of equity | 8.3% - 14.6% | 11.45% |
| Tax rate | 14.0% - 16.5% | 15.25% |
| Cost of debt | 9.2% - 9.9% | 9.55% |
| WACC | 8.1% - 11.7% | 9.9% |
| 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 | 8.3% | 14.6% |
| Tax rate | 14.0% | 16.5% |
| Debt/Equity ratio | 0.85 | 0.85 |
| Cost of debt | 9.2% | 9.9% |
| After-tax WACC | 8.1% | 11.7% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MINDA.KL | Minda Global Bhd | 0.85 | -0.25 | -0.14 |
| 1871.HK | China Oriented International Holdings Ltd | 0.4 | 0.39 | 0.29 |
| 7073.T | Jaic Co Ltd | 0.57 | 0.48 | 0.32 |
| 8055.HK | China E-Information Technology Group Ltd | 0.02 | 0.99 | 0.98 |
| CAREERP.NS | Career Point Ltd | 0.05 | 1.28 | 1.23 |
| CLEDUCATE.NS | CL Educate Ltd | 0.07 | 1.76 | 1.66 |
| COMPUSOFT.NS | Compucom Software Ltd | 0.26 | 1.63 | 1.33 |
| MTEDUCARE.NS | MT Educare Ltd | 8.66 | 0.66 | 0.08 |
| SEG.KL | Seg International Bhd | 0.25 | -0.1 | -0.08 |
| UCW.AX | UCW Ltd | 0.73 | 1.04 | 0.64 |
| Low | High | |
| Unlevered beta | 0.31 | 0.77 |
| Relevered beta | 0.4 | 1.24 |
| Adjusted relevered beta | 0.6 | 1.16 |
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.