SYF.KL WACC - Weighted Average Cost of Capital

The WACC of SYF Resources Bhd (SYF.KL) is 9.7%.

The Cost of Equity of SYF Resources Bhd (SYF.KL) is 10.80%.

The Cost of Debt of SYF Resources Bhd (SYF.KL) is 5.20%.

	Range	Selected
Cost of equity	8.90% - 12.70%	10.80%
Tax rate	27.50% - 33.80%	30.65%
Cost of debt	5.00% - 5.40%	5.20%
WACC	8.1% - 11.3%	9.7%

WACC

SYF.KL WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	7.3%	8.3%
Adjusted beta	0.69	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	12.70%

Tax rate	27.50%	33.80%
Debt/Equity ratio	0.17	0.17
Cost of debt	5.00%	5.40%

After-tax WACC	8.1%	11.3%


Selected WACC	9.7%

SYF.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 SYF.KL:

cost_of_equity (10.80%) = risk_free_rate (4.15%) + equity_risk_premium (7.80%) * 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.