SNC.KL WACC - Weighted Average Cost of Capital

The WACC of Sand Nisko Capital Bhd (SNC.KL) is 6.8%.

The Cost of Equity of Sand Nisko Capital Bhd (SNC.KL) is 6.85%.

The Cost of Debt of Sand Nisko Capital Bhd (SNC.KL) is 6.60%.

	Range	Selected
Cost of equity	5.80% - 7.90%	6.85%
Tax rate	1.90% - 3.00%	2.45%
Cost of debt	6.20% - 7.00%	6.60%
WACC	5.8% - 7.8%	6.8%

WACC

SNC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	7.3%	8.3%
Adjusted beta	0.26	0.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.90%

Tax rate	1.90%	3.00%
Debt/Equity ratio	0.08	0.08
Cost of debt	6.20%	7.00%

After-tax WACC	5.8%	7.8%


Selected WACC	6.8%

SNC.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 SNC.KL:

cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (7.80%) * adjusted_beta (0.26) + 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.