SRIDGE.KL WACC - Weighted Average Cost of Capital

The WACC of Silver Ridge Holdings Bhd (SRIDGE.KL) is 10.1%.

The Cost of Equity of Silver Ridge Holdings Bhd (SRIDGE.KL) is 10.35%.

The Cost of Debt of Silver Ridge Holdings Bhd (SRIDGE.KL) is 7.30%.

	Range	Selected
Cost of equity	8.50% - 12.20%	10.35%
Tax rate	0.60% - 1.00%	0.80%
Cost of debt	5.00% - 9.60%	7.30%
WACC	8.1% - 12.0%	10.1%

WACC

SRIDGE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.69	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	12.20%

Tax rate	0.60%	1.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	5.00%	9.60%

After-tax WACC	8.1%	12.0%


Selected WACC	10.1%

SRIDGE.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 SRIDGE.KL:

cost_of_equity (10.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.69) + 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.