MPI.KL
Malaysian Pacific Industries Bhd
Price:  
19.28 
MYR
Volume:  
100,200.00
Malaysia | Semiconductors & Semiconductor Equipment
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MPI.KL WACC - Weighted Average Cost of Capital

The WACC of Malaysian Pacific Industries Bhd (MPI.KL) is 11.7%.

The Cost of Equity of Malaysian Pacific Industries Bhd (MPI.KL) is 11.90%.
The Cost of Debt of Malaysian Pacific Industries Bhd (MPI.KL) is 5.25%.

Range Selected
Cost of equity 10.50% - 13.30% 11.90%
Tax rate 11.00% - 12.60% 11.80%
Cost of debt 4.40% - 6.10% 5.25%
WACC 10.3% - 13.1% 11.7%
WACC

MPI.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.97 1.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.50% 13.30%
Tax rate 11.00% 12.60%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.40% 6.10%
After-tax WACC 10.3% 13.1%
Selected WACC 11.7%

MPI.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 MPI.KL:

cost_of_equity (11.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.97) + 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.