MITRA.KL WACC - Weighted Average Cost of Capital

The WACC of Mitrajaya Holdings Bhd (MITRA.KL) is 7.3%.

The Cost of Equity of Mitrajaya Holdings Bhd (MITRA.KL) is 8.45%.

The Cost of Debt of Mitrajaya Holdings Bhd (MITRA.KL) is 4.45%.

	Range	Selected
Cost of equity	6.80% - 10.10%	8.45%
Tax rate	21.40% - 29.10%	25.25%
Cost of debt	4.40% - 4.50%	4.45%
WACC	6.0% - 8.5%	7.3%

WACC

MITRA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.43	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	10.10%

Tax rate	21.40%	29.10%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.40%	4.50%

After-tax WACC	6.0%	8.5%


Selected WACC	7.3%

MITRA.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 MITRA.KL:

cost_of_equity (8.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.43) + 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.