500.SI WACC - Weighted Average Cost of Capital

The WACC of Tai Sin Electric Ltd (500.SI) is 6.3%.

The Cost of Equity of Tai Sin Electric Ltd (500.SI) is 7.20%.

The Cost of Debt of Tai Sin Electric Ltd (500.SI) is 4.25%.

	Range	Selected
Cost of equity	5.40% - 9.00%	7.20%
Tax rate	19.00% - 20.10%	19.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.9% - 7.7%	6.3%

WACC

500.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.52	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	9.00%

Tax rate	19.00%	20.10%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.00%	4.50%

After-tax WACC	4.9%	7.7%


Selected WACC	6.3%

500.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 500.SI:

cost_of_equity (7.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.