MYEG.KL WACC - Weighted Average Cost of Capital

The WACC of My EG Services Bhd (MYEG.KL) is 10.1%.

The Cost of Equity of My EG Services Bhd (MYEG.KL) is 10.95%.

The Cost of Debt of My EG Services Bhd (MYEG.KL) is 5.45%.

	Range	Selected
Cost of equity	9.70% - 12.20%	10.95%
Tax rate	0.60% - 0.80%	0.70%
Cost of debt	4.50% - 6.40%	5.45%
WACC	8.8% - 11.3%	10.1%

WACC

MYEG.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.86	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.20%

Tax rate	0.60%	0.80%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.50%	6.40%

After-tax WACC	8.8%	11.3%


Selected WACC	10.1%

MYEG.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 MYEG.KL:

cost_of_equity (10.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.86) + 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.