43E.SI WACC - Weighted Average Cost of Capital

The WACC of Anchor Resources Ltd (43E.SI) is 8.6%.

The Cost of Equity of Anchor Resources Ltd (43E.SI) is 11.80%.

The Cost of Debt of Anchor Resources Ltd (43E.SI) is 5.50%.

	Range	Selected
Cost of equity	9.30% - 14.30%	11.80%
Tax rate	0.10% - 0.20%	0.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.6% - 10.6%	8.6%

WACC

43E.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.29	1.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	14.30%

Tax rate	0.10%	0.20%
Debt/Equity ratio	1	1
Cost of debt	4.00%	7.00%

After-tax WACC	6.6%	10.6%


Selected WACC	8.6%

43E.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 43E.SI:

cost_of_equity (11.80%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.29) + 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.