The WACC of Y Ventures Group Ltd (1F1.SI) is 6.9%.
Range | Selected | |
Cost of equity | 5.7% - 8.3% | 7% |
Tax rate | 0.0% - 0.6% | 0.3% |
Cost of debt | 6.0% - 7.0% | 6.5% |
WACC | 5.7% - 8.2% | 6.9% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.58 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.7% | 8.3% |
Tax rate | 0.0% | 0.6% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 6.0% | 7.0% |
After-tax WACC | 5.7% | 8.2% |
Selected WACC | 6.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
1F1.SI | Y Ventures Group Ltd | 0.05 | 0.71 | 0.68 |
069920.KQ | ISE Commerce Co Ltd | 0.13 | 1.12 | 0.99 |
080010.KQ | eSang Networks Co Ltd | 0.32 | 0.28 | 0.21 |
3185.T | Dream Vision Co Ltd | 0.51 | 0.06 | 0.04 |
3192.T | Shirohato Co Ltd | 1.66 | 0.42 | 0.16 |
3416.T | Pixta Inc | 0.01 | 0.55 | 0.54 |
3556.T | RenetJapanGroup Inc | 0.72 | 1.26 | 0.73 |
3726.T | 4Cs Holdings Co Ltd | 0.07 | 0.86 | 0.8 |
7695.T | Koukandekirukun Inc | 0.11 | 0.39 | 0.36 |
ADKA.TA | Adika Style Ltd | 2.34 | 1.15 | 0.34 |
Low | High | |
Unlevered beta | 0.35 | 0.6 |
Relevered beta | 0.37 | 0.63 |
Adjusted relevered beta | 0.58 | 0.75 |
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 1F1.SI:
cost_of_equity (7.00%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.58) + 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.