SGBHD.KL
Supergenics Bhd
Price:  
0.30 
MYR
Volume:  
13,040.00
Malaysia | N/A
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SGBHD.KL WACC - Weighted Average Cost of Capital

The WACC of Supergenics Bhd (SGBHD.KL) is 7.5%.

The Cost of Equity of Supergenics Bhd (SGBHD.KL) is 7.85%.
The Cost of Debt of Supergenics Bhd (SGBHD.KL) is 6.45%.

Range Selected
Cost of equity 6.80% - 8.90% 7.85%
Tax rate 10.40% - 28.70% 19.55%
Cost of debt 5.90% - 7.00% 6.45%
WACC 6.6% - 8.4% 7.5%
WACC

SGBHD.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.43 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 8.90%
Tax rate 10.40% 28.70%
Debt/Equity ratio 0.16 0.16
Cost of debt 5.90% 7.00%
After-tax WACC 6.6% 8.4%
Selected WACC 7.5%

SGBHD.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 SGBHD.KL:

cost_of_equity (7.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.43) + 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.