43F.SI
ACROMEC Ltd
Price:  
0.02 
SGD
Volume:  
755,100
Singapore | Construction & Engineering

43F.SI WACC - Weighted Average Cost of Capital

The WACC of ACROMEC Ltd (43F.SI) is 5.5%.

The Cost of Equity of ACROMEC Ltd (43F.SI) is 5.7%.
The Cost of Debt of ACROMEC Ltd (43F.SI) is 5.5%.

RangeSelected
Cost of equity4.7% - 6.7%5.7%
Tax rate17.0% - 17.0%17%
Cost of debt4.0% - 7.0%5.5%
WACC4.5% - 6.5%5.5%
WACC

43F.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.290.4
Additional risk adjustments0.5%1.0%
Cost of equity4.7%6.7%
Tax rate17.0%17.0%
Debt/Equity ratio
0.170.17
Cost of debt4.0%7.0%
After-tax WACC4.5%6.5%
Selected WACC5.5%

43F.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 43F.SI:

cost_of_equity (5.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.29) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.