MYID.V WACC - Weighted Average Cost of Capital

The WACC of Killi Ltd (MYID.V) is 6.5%.

The Cost of Equity of Killi Ltd (MYID.V) is 6.50%.

The Cost of Debt of Killi Ltd (MYID.V) is 9.10%.

	Range	Selected
Cost of equity	5.60% - 7.40%	6.50%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	9.10% - 9.10%	9.10%
WACC	5.7% - 7.3%	6.5%

WACC

MYID.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.33	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	7.40%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.16	0.16
Cost of debt	9.10%	9.10%

After-tax WACC	5.7%	7.3%


Selected WACC	6.5%

MYID.V'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 MYID.V:

cost_of_equity (6.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.