MYCRON.KL WACC - Weighted Average Cost of Capital
The WACC of Mycron Steel Bhd (MYCRON.KL) is 7.2%.
| Range | Selected | |
| Cost of equity | 9.1% - 12.9% | 11% |
| Tax rate | 15.2% - 18.2% | 16.7% |
| Cost of debt | 5.7% - 6.0% | 5.85% |
| WACC | 6.4% - 7.9% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.77 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 12.9% |
| Tax rate | 15.2% | 18.2% |
| Debt/Equity ratio | 1.7 | 1.7 |
| Cost of debt | 5.7% | 6.0% |
| After-tax WACC | 6.4% | 7.9% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MYCRON.KL | Mycron Steel Bhd | 1.7 | 0.98 | 0.41 |
| CHOOBEE.KL | Choo Bee Metal Industries Bhd | 0.12 | 0.72 | 0.66 |
| EMETALL.KL | Eonmetall Group Bhd | 1.8 | 0.39 | 0.16 |
| KSSC.KL | K Seng Seng Corporation Bhd | 1 | -0.03 | -0.02 |
| LEONFB.KL | Leon Fuat Bhd | 4.03 | 1.06 | 0.25 |
| LSTEEL.KL | Leader Steel Holdings Berhad | 1.18 | 0.96 | 0.49 |
| MELEWAR.KL | Melewar Industrial Group Bhd | 1.86 | 1.95 | 0.77 |
| PRESTAR.KL | Prestar Resources Bhd | 0.53 | 1.53 | 1.06 |
| TASHIN.KL | Tashin Holdings Bhd | 0.81 | 0.4 | 0.24 |
| YKGI.KL | YKGI Holdings Bhd | 2.01 | 0.78 | 0.3 |
| Low | High | |
| Unlevered beta | 0.28 | 0.44 |
| Relevered beta | 0.66 | 1.06 |
| Adjusted relevered beta | 0.77 | 1.04 |
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 (11.00%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.77) + 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.