505.SI
AsiaMedic Ltd
Price:  
0.01 
SGD
Volume:  
1,200.00
Singapore | Health Care Providers & Services
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505.SI WACC - Weighted Average Cost of Capital

The WACC of AsiaMedic Ltd (505.SI) is 6.5%.

The Cost of Equity of AsiaMedic Ltd (505.SI) is 6.35%.
The Cost of Debt of AsiaMedic Ltd (505.SI) is 8.05%.

Range Selected
Cost of equity 5.10% - 7.60% 6.35%
Tax rate 17.00% - 17.00% 17.00%
Cost of debt 4.90% - 11.20% 8.05%
WACC 4.5% - 8.6% 6.5%
WACC

505.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.37 0.56
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.10% 7.60%
Tax rate 17.00% 17.00%
Debt/Equity ratio 1.53 1.53
Cost of debt 4.90% 11.20%
After-tax WACC 4.5% 8.6%
Selected WACC 6.5%

505.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 505.SI:

cost_of_equity (6.35%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.