MMIS.KL
MMIS Bhd
Price:  
0.20 
MYR
Volume:  
89,500.00
Malaysia | Semiconductors & Semiconductor Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MMIS.KL WACC - Weighted Average Cost of Capital

The WACC of MMIS Bhd (MMIS.KL) is 10.0%.

The Cost of Equity of MMIS Bhd (MMIS.KL) is 11.00%.
The Cost of Debt of MMIS Bhd (MMIS.KL) is 6.30%.

Range Selected
Cost of equity 8.10% - 13.90% 11.00%
Tax rate 14.60% - 15.10% 14.85%
Cost of debt 5.20% - 7.40% 6.30%
WACC 7.4% - 12.5% 10.0%
WACC

MMIS.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.63 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 13.90%
Tax rate 14.60% 15.10%
Debt/Equity ratio 0.22 0.22
Cost of debt 5.20% 7.40%
After-tax WACC 7.4% 12.5%
Selected WACC 10.0%

MMIS.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 MMIS.KL:

cost_of_equity (11.00%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.63) + 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.