SJC.KL WACC - Weighted Average Cost of Capital

The WACC of Seni Jaya Corporation Bhd (SJC.KL) is 10.3%.

The Cost of Equity of Seni Jaya Corporation Bhd (SJC.KL) is 12.40%.

The Cost of Debt of Seni Jaya Corporation Bhd (SJC.KL) is 5.50%.

	Range	Selected
Cost of equity	10.90% - 13.90%	12.40%
Tax rate	2.50% - 9.40%	5.95%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.9% - 11.8%	10.3%

WACC

SJC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.04	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.90%

Tax rate	2.50%	9.40%
Debt/Equity ratio	0.4	0.4
Cost of debt	4.00%	7.00%

After-tax WACC	8.9%	11.8%


Selected WACC	10.3%

SJC.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 SJC.KL:

cost_of_equity (12.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.04) + 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.