SUPERMX.KL WACC - Weighted Average Cost of Capital

The WACC of Supermax Corporation Bhd (SUPERMX.KL) is 8.8%.

The Cost of Equity of Supermax Corporation Bhd (SUPERMX.KL) is 9.15%.

The Cost of Debt of Supermax Corporation Bhd (SUPERMX.KL) is 5.50%.

	Range	Selected
Cost of equity	8.20% - 10.10%	9.15%
Tax rate	16.60% - 21.50%	19.05%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.9% - 9.8%	8.8%

WACC

SUPERMX.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.64	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.10%

Tax rate	16.60%	21.50%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	7.00%

After-tax WACC	7.9%	9.8%


Selected WACC	8.8%

SUPERMX.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 SUPERMX.KL:

cost_of_equity (9.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.64) + 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.