SAMCHEM.KL WACC - Weighted Average Cost of Capital

The WACC of Samchem Holdings Bhd (SAMCHEM.KL) is 6.9%.

The Cost of Equity of Samchem Holdings Bhd (SAMCHEM.KL) is 10.05%.

The Cost of Debt of Samchem Holdings Bhd (SAMCHEM.KL) is 4.75%.

	Range	Selected
Cost of equity	8.80% - 11.30%	10.05%
Tax rate	23.70% - 24.70%	24.20%
Cost of debt	4.20% - 5.30%	4.75%
WACC	6.1% - 7.7%	6.9%

WACC

SAMCHEM.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.73	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.30%

Tax rate	23.70%	24.70%
Debt/Equity ratio	0.94	0.94
Cost of debt	4.20%	5.30%

After-tax WACC	6.1%	7.7%


Selected WACC	6.9%

SAMCHEM.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 SAMCHEM.KL:

cost_of_equity (10.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.73) + 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.