533.SI
ABR Holdings Ltd
Price:  
0.42 
SGD
Volume:  
10,100
Singapore | Hotels, Restaurants & Leisure

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 5.8%.
The Cost of Debt of ABR Holdings Ltd (533.SI) is 6.3%.

RangeSelected
Cost of equity4.6% - 7.0%5.8%
Tax rate12.3% - 14.6%13.45%
Cost of debt4.6% - 8.0%6.3%
WACC4.4% - 6.9%5.6%
WACC

533.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.380.54
Additional risk adjustments0.0%0.5%
Cost of equity4.6%7.0%
Tax rate12.3%14.6%
Debt/Equity ratio
0.660.66
Cost of debt4.6%8.0%
After-tax WACC4.4%6.9%
Selected WACC5.6%

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 (5.80%) = 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.