SUPERMX.KL
Supermax Corporation Bhd
Price:  
0.57 
MYR
Volume:  
6,732,000.00
Malaysia | Health Care Equipment & Supplies
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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.