585.SI
Asian Micro Holdings Ltd
Price:  
SGD
Volume:  
130,100
Singapore | Commercial Services & Supplies

585.SI WACC - Weighted Average Cost of Capital

The WACC of Asian Micro Holdings Ltd (585.SI) is 6.1%.

The Cost of Equity of Asian Micro Holdings Ltd (585.SI) is 6.1%.
The Cost of Debt of Asian Micro Holdings Ltd (585.SI) is 6.85%.

RangeSelected
Cost of equity5.1% - 7.1%6.1%
Tax rate0.6% - 0.9%0.75%
Cost of debt6.7% - 7.0%6.85%
WACC5.1% - 7.1%6.1%
WACC

585.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.370.47
Additional risk adjustments0.5%1.0%
Cost of equity5.1%7.1%
Tax rate0.6%0.9%
Debt/Equity ratio
0.030.03
Cost of debt6.7%7.0%
After-tax WACC5.1%7.1%
Selected WACC6.1%

585.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 585.SI:

cost_of_equity (6.10%) = 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.