SCC.KL WACC - Weighted Average Cost of Capital

The WACC of SCC Holdings Bhd (SCC.KL) is 8.2%.

The Cost of Equity of SCC Holdings Bhd (SCC.KL) is 8.30%.

The Cost of Debt of SCC Holdings Bhd (SCC.KL) is 6.90%.

	Range	Selected
Cost of equity	6.80% - 9.80%	8.30%
Tax rate	33.80% - 39.40%	36.60%
Cost of debt	4.40% - 9.40%	6.90%
WACC	6.7% - 9.7%	8.2%

WACC

SCC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.44	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.80%

Tax rate	33.80%	39.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.40%	9.40%

After-tax WACC	6.7%	9.7%


Selected WACC	8.2%

SCC.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 SCC.KL:

cost_of_equity (8.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.44) + 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.