SCGM.KL
SCGM Bhd
Price:  
0.58 
MYR
Volume:  
60,200.00
Malaysia | Containers & Packaging
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SCGM.KL WACC - Weighted Average Cost of Capital

The WACC of SCGM Bhd (SCGM.KL) is 8.7%.

The Cost of Equity of SCGM Bhd (SCGM.KL) is 12.95%.
The Cost of Debt of SCGM Bhd (SCGM.KL) is 5.00%.

Range Selected
Cost of equity 11.40% - 14.50% 12.95%
Tax rate 9.20% - 13.20% 11.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.9% - 9.4% 8.7%
WACC

SCGM.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 1.1 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 14.50%
Tax rate 9.20% 13.20%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.9% 9.4%
Selected WACC 8.7%

SCGM.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 SCGM.KL:

cost_of_equity (12.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.1) + 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.