MTAG.KL
Mtag Group Bhd
Price:  
0.29 
MYR
Volume:  
108,900.00
Malaysia | Commercial Services & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

MTAG.KL WACC - Weighted Average Cost of Capital

The WACC of Mtag Group Bhd (MTAG.KL) is 10.3%.

The Cost of Equity of Mtag Group Bhd (MTAG.KL) is 10.30%.
The Cost of Debt of Mtag Group Bhd (MTAG.KL) is 15.55%.

Range Selected
Cost of equity 8.80% - 11.80% 10.30%
Tax rate 24.20% - 24.60% 24.40%
Cost of debt 4.40% - 26.70% 15.55%
WACC 8.8% - 11.8% 10.3%
WACC

MTAG.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.73 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.80%
Tax rate 24.20% 24.60%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.40% 26.70%
After-tax WACC 8.8% 11.8%
Selected WACC 10.3%

MTAG.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 MTAG.KL:

cost_of_equity (10.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.73) + 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.