40U.SI WACC - Weighted Average Cost of Capital
The WACC of MS Holdings Ltd (40U.SI) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.2% | 6.6% |
| Tax rate | 9.2% - 10.6% | 9.9% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.1% - 6.9% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.46 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.2% |
| Tax rate | 9.2% | 10.6% |
| Debt/Equity ratio | 1.92 | 1.92 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.1% | 6.9% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 40U.SI | MS Holdings Ltd | 1.92 | 0.93 | 0.34 |
| 2588.HK | BOC Aviation Ltd | 2.56 | 0.19 | 0.06 |
| 581.SI | Sunrise Shares Holdings Ltd | 0.03 | 0.87 | 0.85 |
| 5AI.SI | P5 Capital Holdings Ltd | 0.76 | 0.13 | 0.08 |
| 5FX.SI | New Wave Holdings Ltd | 1.11 | 1.92 | 0.96 |
| 5PO.SI | Hiap Tong Corporation Ltd | 1.68 | -0.23 | -0.09 |
| 8425.HK | Hing Ming Holdings Ltd | 2.59 | 0.46 | 0.14 |
| A55.SI | Asia Enterprises Holding Ltd | 0.16 | 0.01 | 0.01 |
| RDR.SI | Incredible Holdings Ltd | 0.42 | -0.1 | -0.07 |
| SIV.AX | Siv Capital Ltd | 0 | 0.35 | 0.35 |
| Low | High | |
| Unlevered beta | 0.07 | 0.22 |
| Relevered beta | 0.19 | 0.6 |
| Adjusted relevered beta | 0.46 | 0.73 |
40U.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 40U.SI:
cost_of_equity (6.60%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.