SYSTECH.KL
Systech Bhd
Price:  
0.20 
MYR
Volume:  
305,500.00
Malaysia | Software
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SYSTECH.KL WACC - Weighted Average Cost of Capital

The WACC of Systech Bhd (SYSTECH.KL) is 7.7%.

The Cost of Equity of Systech Bhd (SYSTECH.KL) is 7.70%.
The Cost of Debt of Systech Bhd (SYSTECH.KL) is 7.30%.

Range Selected
Cost of equity 6.70% - 8.70% 7.70%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 7.00% - 7.60% 7.30%
WACC 6.7% - 8.6% 7.7%
WACC

SYSTECH.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.43 0.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 8.70%
Tax rate 24.00% 24.00%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 7.60%
After-tax WACC 6.7% 8.6%
Selected WACC 7.7%

SYSTECH.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 SYSTECH.KL:

cost_of_equity (7.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.43) + 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.