MYNEWS.KL
myNEWS Holdings Bhd
Price:  
0.54 
MYR
Volume:  
987,800
Malaysia | Specialty Retail

MYNEWS.KL WACC - Weighted Average Cost of Capital

The WACC of myNEWS Holdings Bhd (MYNEWS.KL) is 6.8%.

The Cost of Equity of myNEWS Holdings Bhd (MYNEWS.KL) is 8.05%.
The Cost of Debt of myNEWS Holdings Bhd (MYNEWS.KL) is 5.8%.

RangeSelected
Cost of equity6.9% - 9.2%8.05%
Tax rate12.5% - 25.5%19%
Cost of debt4.7% - 6.9%5.8%
WACC5.9% - 7.7%6.8%
WACC

MYNEWS.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.450.56
Additional risk adjustments0.0%0.5%
Cost of equity6.9%9.2%
Tax rate12.5%25.5%
Debt/Equity ratio
0.570.57
Cost of debt4.7%6.9%
After-tax WACC5.9%7.7%
Selected WACC6.8%

MYNEWS.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 MYNEWS.KL:

cost_of_equity (8.05%) = 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.