MYCRON.KL WACC - Weighted Average Cost of Capital

The WACC of Mycron Steel Bhd (MYCRON.KL) is 6.9%.

The Cost of Equity of Mycron Steel Bhd (MYCRON.KL) is 9.55%.

The Cost of Debt of Mycron Steel Bhd (MYCRON.KL) is 5.35%.

	Range	Selected
Cost of equity	6.90% - 12.20%	9.55%
Tax rate	18.20% - 19.40%	18.80%
Cost of debt	5.20% - 5.50%	5.35%
WACC	5.5% - 8.2%	6.9%

WACC

MYCRON.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	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	12.20%

Tax rate	18.20%	19.40%
Debt/Equity ratio	1.08	1.08
Cost of debt	5.20%	5.50%

After-tax WACC	5.5%	8.2%


Selected WACC	6.9%

MYCRON.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 MYCRON.KL:

cost_of_equity (9.55%) = 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.