SYCAL.KL
Sycal Ventures Bhd
Price:  
0.18 
MYR
Volume:  
34,500.00
Malaysia | Construction & Engineering
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SYCAL.KL WACC - Weighted Average Cost of Capital

The WACC of Sycal Ventures Bhd (SYCAL.KL) is 8.1%.

The Cost of Equity of Sycal Ventures Bhd (SYCAL.KL) is 9.40%.
The Cost of Debt of Sycal Ventures Bhd (SYCAL.KL) is 7.05%.

Range Selected
Cost of equity 8.00% - 10.80% 9.40%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 5.30% - 8.80% 7.05%
WACC 6.8% - 9.5% 8.1%
WACC

SYCAL.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.61 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.80%
Tax rate 24.00% 24.00%
Debt/Equity ratio 0.44 0.44
Cost of debt 5.30% 8.80%
After-tax WACC 6.8% 9.5%
Selected WACC 8.1%

SYCAL.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 SYCAL.KL:

cost_of_equity (9.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.61) + 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.