SNC.KL WACC - Weighted Average Cost of Capital
The WACC of Sand Nisko Capital Bhd (SNC.KL) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.9% | 6.85% |
| Tax rate | 1.9% - 3.0% | 2.45% |
| Cost of debt | 6.2% - 7.0% | 6.6% |
| WACC | 5.8% - 7.8% | 6.8% |
| 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 | 5.8% | 7.9% |
| Tax rate | 1.9% | 3.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 6.2% | 7.0% |
| After-tax WACC | 5.8% | 7.8% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SNC.KL | Sand Nisko Capital Bhd | 0.08 | 0.58 | 0.54 |
| 1H8.SI | LY Corporation Ltd | 0.66 | -1.73 | -1.05 |
| DPS.KL | Dps Resources Bhd | 0.21 | 0.4 | 0.33 |
| EMICO.KL | Emico Holdings Bhd | 0.43 | -0.16 | -0.11 |
| EUROSP.KL | Eurospan Holdings Bhd | 0 | 1.27 | 1.27 |
| FACBIND.KL | FACB Industries Incorporated Bhd | 0.01 | 0.4 | 0.4 |
| JAYCORP.KL | Jaycorp Bhd | 0.09 | 0.64 | 0.59 |
| PARAGON.KL | Paragon Union Bhd | 0.08 | 1.04 | 0.96 |
| SHH.KL | Shh Resources Holdings Bhd | 0.04 | 0.27 | 0.26 |
| SOFA.JK | Boston Furniture Industries Tbk PT | 0.03 | 1.89 | 1.84 |
| Low | High | |
| Unlevered beta | 0.37 | 0.56 |
| Relevered beta | -0.1 | 0.06 |
| Adjusted relevered beta | 0.26 | 0.37 |
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.