SYMLIFE.KL WACC - Weighted Average Cost of Capital

The WACC of Symphony Life Bhd (SYMLIFE.KL) is 8.3%.

The Cost of Equity of Symphony Life Bhd (SYMLIFE.KL) is 11.50%.

The Cost of Debt of Symphony Life Bhd (SYMLIFE.KL) is 8.45%.

	Range	Selected
Cost of equity	10.10% - 12.90%	11.50%
Tax rate	27.00% - 39.70%	33.35%
Cost of debt	4.60% - 12.30%	8.45%
WACC	6.6% - 10.0%	8.3%

WACC

SYMLIFE.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.92	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.90%

Tax rate	27.00%	39.70%
Debt/Equity ratio	1.08	1.08
Cost of debt	4.60%	12.30%

After-tax WACC	6.6%	10.0%


Selected WACC	8.3%

SYMLIFE.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 SYMLIFE.KL:

cost_of_equity (11.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.92) + 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.