41H.SI
Blackgold Natural Resources Ltd
Price:  
0.00 
SGD
Volume:  
500.00
Singapore | Oil, Gas & Consumable Fuels
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41H.SI WACC - Weighted Average Cost of Capital

The WACC of Blackgold Natural Resources Ltd (41H.SI) is 5.8%.

The Cost of Equity of Blackgold Natural Resources Ltd (41H.SI) is 8.05%.
The Cost of Debt of Blackgold Natural Resources Ltd (41H.SI) is 4.25%.

Range Selected
Cost of equity 6.10% - 10.00% 8.05%
Tax rate -% - -% -%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.8% - 6.7% 5.8%
WACC

41H.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.66 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 10.00%
Tax rate -% -%
Debt/Equity ratio 1.48 1.48
Cost of debt 4.00% 4.50%
After-tax WACC 4.8% 6.7%
Selected WACC 5.8%

41H.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 41H.SI:

cost_of_equity (8.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.