SAMCHEM.KL
Samchem Holdings Bhd
Price:  
0.35 
MYR
Volume:  
28,100
Malaysia | Trading Companies & Distributors

SAMCHEM.KL WACC - Weighted Average Cost of Capital

The WACC of Samchem Holdings Bhd (SAMCHEM.KL) is 6.7%.

The Cost of Equity of Samchem Holdings Bhd (SAMCHEM.KL) is 9.85%.
The Cost of Debt of Samchem Holdings Bhd (SAMCHEM.KL) is 5.15%.

RangeSelected
Cost of equity8.5% - 11.2%9.85%
Tax rate24.1% - 25.1%24.6%
Cost of debt4.3% - 6.0%5.15%
WACC5.7% - 7.7%6.7%
WACC

SAMCHEM.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.680.81
Additional risk adjustments0.0%0.5%
Cost of equity8.5%11.2%
Tax rate24.1%25.1%
Debt/Equity ratio
1.081.08
Cost of debt4.3%6.0%
After-tax WACC5.7%7.7%
Selected WACC6.7%

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 (9.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.68) + 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.