SAPNRG.KL
Sapura Energy Bhd
Price:  
0.70 
MYR
Volume:  
1,615,800.00
Malaysia | Energy Equipment & Services
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SAPNRG.KL WACC - Weighted Average Cost of Capital

The WACC of Sapura Energy Bhd (SAPNRG.KL) is 5.8%.

The Cost of Equity of Sapura Energy Bhd (SAPNRG.KL) is 43.95%.
The Cost of Debt of Sapura Energy Bhd (SAPNRG.KL) is 5.50%.

Range Selected
Cost of equity 38.10% - 49.80% 43.95%
Tax rate 16.30% - 46.60% 31.45%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.3% - 6.3% 5.8%
WACC

SAPNRG.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 5.01 5.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 38.10% 49.80%
Tax rate 16.30% 46.60%
Debt/Equity ratio 16.81 16.81
Cost of debt 4.00% 7.00%
After-tax WACC 5.3% 6.3%
Selected WACC 5.8%

SAPNRG.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 SAPNRG.KL:

cost_of_equity (43.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (5.01) + 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.