SURIA.KL WACC - Weighted Average Cost of Capital
The WACC of Suria Capital Holdings Bhd (SURIA.KL) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.1% | 8.95% |
| Tax rate | 30.6% - 31.8% | 31.2% |
| Cost of debt | 4.4% - 8.7% | 6.55% |
| WACC | 7.6% - 9.9% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.59 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.1% |
| Tax rate | 30.6% | 31.8% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.4% | 8.7% |
| After-tax WACC | 7.6% | 9.9% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SURIA.KL | Suria Capital Holdings Bhd | 0.04 | 0.79 | 0.77 |
| 498.HK | PYI Corporation Ltd | 1.01 | 1.05 | 0.62 |
| BIPORT.KL | Bintulu Port Holdings Bhd | 0.47 | -0.13 | -0.1 |
| HAH.VN | Hai An Transport and Stevedoring JSC | 0.24 | 0.39 | 0.33 |
| IPCM.JK | Jasa Armada Indonesia Tbk PT | 0.06 | 0.5 | 0.48 |
| MMCCORP.KL | MMC Corporation Bhd | 2 | 1.24 | 0.52 |
| NAVKARCORP.NS | Navkar Corporation Ltd | 0.1 | 1.86 | 1.74 |
| PORT.BK | Sahathai Terminal PCL | 3.53 | 0.58 | 0.17 |
| PRKCORP.KL | Perak Corporation Bhd | 4.17 | 0.87 | 0.22 |
| WPRTS.KL | Westports Holdings Bhd | 0.06 | 0.42 | 0.41 |
| Low | High | |
| Unlevered beta | 0.38 | 0.5 |
| Relevered beta | 0.39 | 0.51 |
| Adjusted relevered beta | 0.59 | 0.67 |
SURIA.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 SURIA.KL:
cost_of_equity (8.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.59) + 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.