The WACC of Seera Group Holding (1810.SR) is 8.7%.
Range | Selected | |
Cost of equity | 8.3% - 11.4% | 9.85% |
Tax rate | 13.7% - 17.1% | 15.4% |
Cost of debt | 4.0% - 6.5% | 5.25% |
WACC | 7.3% - 10.1% | 8.7% |
Category | Low | High |
Long-term bond rate | 5.9% | 6.4% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.39 | 0.63 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.3% | 11.4% |
Tax rate | 13.7% | 17.1% |
Debt/Equity ratio | 0.27 | 0.27 |
Cost of debt | 4.0% | 6.5% |
After-tax WACC | 7.3% | 10.1% |
Selected WACC | 8.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
1810.SR | Seera Group Holding | 0.27 | 0.84 | 0.69 |
1383.HK | Suncity Group Holdings Ltd | 8.07 | 0.73 | 0.09 |
1820.SR | Abdulmohsen Al Hokair Group for Tourism and Development Company CJSC | 1.79 | 1.19 | 0.47 |
1901.HK | Feiyang International Holdings Group Ltd | 1.68 | 0.05 | 0.02 |
300178.SZ | Tempus Global Business Service Group Holding Ltd | 23.37 | 0.89 | 0.04 |
308.HK | China Travel International Investment Hong Kong Ltd | 0.32 | 0.91 | 0.72 |
4010.SR | Dur Hospitality Company SJSC | 0.53 | 0.43 | 0.3 |
6882.HK | EGL Holdings Co Ltd | 1.27 | 0.03 | 0.01 |
CTD.AX | Corporate Travel Management Ltd | 0.02 | 1.11 | 1.1 |
PANR.JK | Panorama Sentrawisata Tbk PT | 0.35 | -0.1 | -0.08 |
Low | High | |
Unlevered beta | 0.07 | 0.37 |
Relevered beta | 0.09 | 0.45 |
Adjusted relevered beta | 0.39 | 0.63 |
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 1810.SR:
cost_of_equity (9.85%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.39) + 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.