The WACC of ACROMEC Ltd (43F.SI) is 5.5%.
Range | Selected | |
Cost of equity | 4.7% - 6.7% | 5.7% |
Tax rate | 17.0% - 17.0% | 17% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 4.5% - 6.5% | 5.5% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.29 | 0.4 |
Additional risk adjustments | 0.5% | 1.0% |
Cost of equity | 4.7% | 6.7% |
Tax rate | 17.0% | 17.0% |
Debt/Equity ratio | 0.17 | 0.17 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 4.5% | 6.5% |
Selected WACC | 5.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
43F.SI | ACROMEC Ltd | 0.17 | 0.57 | 0.5 |
1B6.SI | Ocean Sky International Ltd | 1.79 | -0.56 | -0.23 |
542851.BO | Gensol Engineering Ltd | 0.45 | 0.42 | 0.31 |
5G9.SI | Tritech Group Ltd | 0.78 | 1.79 | 1.09 |
5OC.SI | Koyo International Ltd | 0.61 | -0.34 | -0.23 |
5UO.SI | Sysma Holdings Ltd | 0.43 | -0.34 | -0.25 |
BRD.SI | Sapphire Corporation Ltd | 0.45 | 0.23 | 0.17 |
C06.SI | CSC Holdings Ltd | 3.88 | -0.3 | -0.07 |
KUX.SI | OIO Holdings Ltd | 0.33 | -0.05 | -0.04 |
MF6.SI | Mun Siong Engineering Ltd | 0.46 | 0.14 | 0.1 |
Low | High | |
Unlevered beta | -0.05 | 0.13 |
Relevered beta | -0.06 | 0.1 |
Adjusted relevered beta | 0.29 | 0.4 |
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.