1H3.SI
Clearbridge Health Ltd
Price:  
SGD
Volume:  
61,191,900
Singapore | Health Care Providers & Services

1H3.SI WACC - Weighted Average Cost of Capital

The WACC of Clearbridge Health Ltd (1H3.SI) is 5.4%.

The Cost of Equity of Clearbridge Health Ltd (1H3.SI) is 5.25%.
The Cost of Debt of Clearbridge Health Ltd (1H3.SI) is 5.8%.

RangeSelected
Cost of equity4.5% - 6.0%5.25%
Tax rate1.9% - 2.2%2.05%
Cost of debt4.6% - 7.0%5.8%
WACC4.5% - 6.3%5.4%
WACC

1H3.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.340.37
Additional risk adjustments0.0%0.5%
Cost of equity4.5%6.0%
Tax rate1.9%2.2%
Debt/Equity ratio
0.630.63
Cost of debt4.6%7.0%
After-tax WACC4.5%6.3%
Selected WACC5.4%

1H3.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 1H3.SI:

cost_of_equity (5.25%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.