The WACC of Samchem Holdings Bhd (SAMCHEM.KL) is 6.7%.
Range | Selected | |
Cost of equity | 8.5% - 11.2% | 9.85% |
Tax rate | 24.1% - 25.1% | 24.6% |
Cost of debt | 4.3% - 6.0% | 5.15% |
WACC | 5.7% - 7.7% | 6.7% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 0.68 | 0.81 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.5% | 11.2% |
Tax rate | 24.1% | 25.1% |
Debt/Equity ratio | 1.08 | 1.08 |
Cost of debt | 4.3% | 6.0% |
After-tax WACC | 5.7% | 7.7% |
Selected WACC | 6.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SAMCHEM.KL | Samchem Holdings Bhd | 1.08 | 0.71 | 0.39 |
1891.HK | Heng Hup Holdings Ltd | 1.5 | -0.06 | -0.03 |
ACO.KL | Aco Group Bhd | 0.31 | 0.68 | 0.55 |
AYS.KL | AYS Ventures Bhd | 4.23 | 0.55 | 0.13 |
CHINHIN.KL | Chin Hin Group Bhd | 0.21 | -0.75 | -0.65 |
ENGTEX.KL | Engtex Group Bhd | 1.45 | 1.1 | 0.53 |
HARISON.KL | Harrisons Holdings Malaysia Bhd | 0.53 | 0.42 | 0.3 |
LIONPSIM.KL | Lion Posim Bhd | 0.44 | 0.36 | 0.27 |
LUXCHEM.KL | Luxchem Corporation Bhd | 0.19 | 0.9 | 0.79 |
PANSAR.KL | Pansar Bhd | 0.89 | 0.68 | 0.41 |
Low | High | |
Unlevered beta | 0.29 | 0.4 |
Relevered beta | 0.52 | 0.72 |
Adjusted relevered beta | 0.68 | 0.81 |
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.