UNIMECH.KL
Unimech Group Bhd
Price:  
1.41 
MYR
Volume:  
7,000
Malaysia | Machinery

UNIMECH.KL WACC - Weighted Average Cost of Capital

The WACC of Unimech Group Bhd (UNIMECH.KL) is 9.3%.

The Cost of Equity of Unimech Group Bhd (UNIMECH.KL) is 11.45%.
The Cost of Debt of Unimech Group Bhd (UNIMECH.KL) is 6.25%.

RangeSelected
Cost of equity9.1% - 13.8%11.45%
Tax rate26.6% - 27.5%27.05%
Cost of debt5.0% - 7.5%6.25%
WACC7.4% - 11.2%9.3%
WACC

UNIMECH.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.781.15
Additional risk adjustments0.0%0.5%
Cost of equity9.1%13.8%
Tax rate26.6%27.5%
Debt/Equity ratio
0.460.46
Cost of debt5.0%7.5%
After-tax WACC7.4%11.2%
Selected WACC9.3%

UNIMECH.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 UNIMECH.KL:

cost_of_equity (11.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.78) + 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.