SAUDEE.KL WACC - Weighted Average Cost of Capital

The WACC of Saudee Group Bhd (SAUDEE.KL) is 9.6%.

The Cost of Equity of Saudee Group Bhd (SAUDEE.KL) is 9.80%.

The Cost of Debt of Saudee Group Bhd (SAUDEE.KL) is 4.45%.

	Range	Selected
Cost of equity	8.20% - 11.40%	9.80%
Tax rate	4.60% - 7.50%	6.05%
Cost of debt	4.40% - 4.50%	4.45%
WACC	8.0% - 11.1%	9.6%

WACC

SAUDEE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.64	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	11.40%

Tax rate	4.60%	7.50%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.40%	4.50%

After-tax WACC	8.0%	11.1%


Selected WACC	9.6%

SAUDEE.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 SAUDEE.KL:

cost_of_equity (9.80%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.64) + 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.