1B1.SI WACC - Weighted Average Cost of Capital

The WACC of HC Surgical Specialists Ltd (1B1.SI) is 5.9%.

The Cost of Equity of HC Surgical Specialists Ltd (1B1.SI) is 6.10%.

The Cost of Debt of HC Surgical Specialists Ltd (1B1.SI) is 5.35%.

	Range	Selected
Cost of equity	4.70% - 7.50%	6.10%
Tax rate	15.20% - 18.60%	16.90%
Cost of debt	4.00% - 6.70%	5.35%
WACC	4.5% - 7.3%	5.9%

WACC

1B1.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.39	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	7.50%

Tax rate	15.20%	18.60%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	6.70%

After-tax WACC	4.5%	7.3%


Selected WACC	5.9%

1B1.SI'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 1B1.SI:

cost_of_equity (6.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * 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.