The WACC of ABR Holdings Ltd (533.SI) is 5.6%.
Range | Selected | |
Cost of equity | 4.6% - 7.0% | 5.8% |
Tax rate | 12.3% - 14.6% | 13.45% |
Cost of debt | 4.6% - 8.0% | 6.3% |
WACC | 4.4% - 6.9% | 5.6% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.38 | 0.54 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.6% | 7.0% |
Tax rate | 12.3% | 14.6% |
Debt/Equity ratio | 0.66 | 0.66 |
Cost of debt | 4.6% | 8.0% |
After-tax WACC | 4.4% | 6.9% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
533.SI | ABR Holdings Ltd | 0.66 | -0.11 | -0.07 |
1A0.SI | Katrina Group Ltd | 2.85 | -0.42 | -0.12 |
1G1.SI | RE&S Holdings Ltd | 0.58 | 0.22 | 0.15 |
42R.SI | JUMBO Group Ltd | 0.23 | 0.32 | 0.27 |
540.SI | Tung Lok Restaurants (2000) Ltd | 1.2 | 0.25 | 0.12 |
5OI.SI | Japan Foods Holding Ltd | 1.35 | -0.36 | -0.17 |
8179.HK | Palinda Group Holdings Ltd | 4.1 | 1.19 | 0.26 |
8475.HK | K Group Holdings Ltd | 2.24 | 1.09 | 0.37 |
8527.HK | JLogo Holdings Ltd | 0.55 | -0.68 | -0.46 |
9262.T | Silver Life Co Ltd | 0.21 | 1.02 | 0.86 |
Low | High | |
Unlevered beta | 0.05 | 0.2 |
Relevered beta | 0.07 | 0.31 |
Adjusted relevered beta | 0.38 | 0.54 |
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 (5.80%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + 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.