1E6.SI WACC - Weighted Average Cost of Capital

The WACC of World Class Global Ltd (1E6.SI) is 8.4%.

The Cost of Equity of World Class Global Ltd (1E6.SI) is 7.70%.

The Cost of Debt of World Class Global Ltd (1E6.SI) is 13.40%.

	Range	Selected
Cost of equity	6.30% - 9.10%	7.70%
Tax rate	24.70% - 40.00%	32.35%
Cost of debt	6.40% - 20.40%	13.40%
WACC	5.1% - 11.7%	8.4%

WACC

1E6.SI WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	4.7%	5.7%
Adjusted beta	0.71	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	9.10%

Tax rate	24.70%	40.00%
Debt/Equity ratio	4.72	4.72
Cost of debt	6.40%	20.40%

After-tax WACC	5.1%	11.7%


Selected WACC	8.4%

1E6.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 1E6.SI:

cost_of_equity (7.70%) = risk_free_rate (3.15%) + equity_risk_premium (5.20%) * adjusted_beta (0.71) + 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.