The WACC of myNEWS Holdings Bhd (MYNEWS.KL) is 6.8%.
Range | Selected | |
Cost of equity | 6.9% - 9.2% | 8.05% |
Tax rate | 12.5% - 25.5% | 19% |
Cost of debt | 4.7% - 6.9% | 5.8% |
WACC | 5.9% - 7.7% | 6.8% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 0.45 | 0.56 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.9% | 9.2% |
Tax rate | 12.5% | 25.5% |
Debt/Equity ratio | 0.57 | 0.57 |
Cost of debt | 4.7% | 6.9% |
After-tax WACC | 5.9% | 7.7% |
Selected WACC | 6.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MYNEWS.KL | myNEWS Holdings Bhd | 0.57 | 0.86 | 0.58 |
1942.HK | MOG Holdings Ltd | 0.11 | 1.33 | 1.21 |
3174.T | Happiness and D Co Ltd | 2.34 | 0.14 | 0.05 |
653.HK | Bonjour Holdings Ltd | 2.86 | -0.14 | -0.04 |
8230.T | Hasegawa Co Ltd | 0.64 | 0.05 | 0.03 |
ATLAN.KL | Atlan Holdings Bhd | 0.28 | 0.22 | 0.17 |
INNATURE.KL | Innature Bhd | 0.2 | 0.65 | 0.56 |
KHJB.KL | Kim Hin Joo (Malaysia) Bhd | 0.17 | 0.27 | 0.24 |
SONA.JK | Sona Topas Tourism Industry Tbk PT | 0.07 | 0.02 | 0.02 |
TOMEI.KL | Tomei Consolidated Bhd | 1.49 | 0.52 | 0.22 |
Low | High | |
Unlevered beta | 0.12 | 0.23 |
Relevered beta | 0.18 | 0.34 |
Adjusted relevered beta | 0.45 | 0.56 |
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.