533.SI WACC - Weighted Average Cost of Capital

The WACC of ABR Holdings Ltd (533.SI) is 5.6%.

The Cost of Equity of ABR Holdings Ltd (533.SI) is 5.75%.

The Cost of Debt of ABR Holdings Ltd (533.SI) is 6.30%.

	Range	Selected
Cost of equity	4.50% - 7.00%	5.75%
Tax rate	12.30% - 14.60%	13.45%
Cost of debt	4.60% - 8.00%	6.30%
WACC	4.3% - 6.9%	5.6%

WACC

533.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.35	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.50%	7.00%

Tax rate	12.30%	14.60%
Debt/Equity ratio	0.68	0.68
Cost of debt	4.60%	8.00%

After-tax WACC	4.3%	6.9%


Selected WACC	5.6%

533.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 533.SI:

cost_of_equity (5.75%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.