NOVAMSC.KL WACC - Weighted Average Cost of Capital
The WACC of Nova Msc Bhd (NOVAMSC.KL) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.3% - 9.2% | 8.25% |
| Tax rate | 0.1% - 0.2% | 0.15% |
| Cost of debt | 7.0% - 7.7% | 7.35% |
| WACC | 7.3% - 9.1% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.51 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 9.2% |
| Tax rate | 0.1% | 0.2% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 7.0% | 7.7% |
| After-tax WACC | 7.3% | 9.1% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NOVAMSC.KL | Nova Msc Bhd | 0.09 | 1.69 | 1.54 |
| 279600.KQ | MediaZen Inc | 0.2 | 0.37 | 0.31 |
| 7064.T | Howtelevision Inc | 0.2 | 0.14 | 0.12 |
| 802.HK | China E-Wallet Payment Group Ltd | 0.66 | 0.37 | 0.22 |
| CENSOF.KL | Censof Holdings Bhd | 0.02 | 1.57 | 1.54 |
| COO.AX | Corum Group Ltd | 0 | -0.01 | -0.01 |
| ECOHLDS.KL | Ecobuilt Holdings Bhd | 0.6 | -0.26 | -0.16 |
| MNC.KL | M N C Wireless Bhd | 0 | 0.42 | 0.42 |
| NEXGRAM.KL | Nexgram Holdings Bhd | 1.01 | 0.67 | 0.33 |
| SYSTECH.KL | Systech Bhd | 0.11 | 0.29 | 0.26 |
| Low | High | |
| Unlevered beta | 0.25 | 0.32 |
| Relevered beta | 0.27 | 0.34 |
| Adjusted relevered beta | 0.51 | 0.56 |
NOVAMSC.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 NOVAMSC.KL:
cost_of_equity (8.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.51) + 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.