MULPHA.KL WACC - Weighted Average Cost of Capital

The WACC of Mulpha International Bhd (MULPHA.KL) is 8.6%.

The Cost of Equity of Mulpha International Bhd (MULPHA.KL) is 8.35%.

The Cost of Debt of Mulpha International Bhd (MULPHA.KL) is 10.45%.

	Range	Selected
Cost of equity	6.80% - 9.90%	8.35%
Tax rate	16.30% - 17.70%	17.00%
Cost of debt	5.30% - 15.60%	10.45%
WACC	5.2% - 12.0%	8.6%

WACC

MULPHA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.45	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.90%

Tax rate	16.30%	17.70%
Debt/Equity ratio	2.39	2.39
Cost of debt	5.30%	15.60%

After-tax WACC	5.2%	12.0%


Selected WACC	8.6%

MULPHA.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 MULPHA.KL:

cost_of_equity (8.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.45) + 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.