MTOUCHE.KL WACC - Weighted Average Cost of Capital

The WACC of mTouche Technology Bhd (MTOUCHE.KL) is 9.5%.

The Cost of Equity of mTouche Technology Bhd (MTOUCHE.KL) is 8.60%.

The Cost of Debt of mTouche Technology Bhd (MTOUCHE.KL) is 12.20%.

	Range	Selected
Cost of equity	7.30% - 9.90%	8.60%
Tax rate	0.60% - 1.50%	1.05%
Cost of debt	7.00% - 17.40%	12.20%
WACC	7.2% - 11.9%	9.5%

WACC

MTOUCHE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.51	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	9.90%

Tax rate	0.60%	1.50%
Debt/Equity ratio	0.38	0.38
Cost of debt	7.00%	17.40%

After-tax WACC	7.2%	11.9%


Selected WACC	9.5%

MTOUCHE.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 MTOUCHE.KL:

cost_of_equity (8.60%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.51) + 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.