The WACC of Asian Micro Holdings Ltd (585.SI) is 6.1%.
Range | Selected | |
Cost of equity | 5.1% - 7.1% | 6.1% |
Tax rate | 0.6% - 0.9% | 0.75% |
Cost of debt | 6.7% - 7.0% | 6.85% |
WACC | 5.1% - 7.1% | 6.1% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.37 | 0.47 |
Additional risk adjustments | 0.5% | 1.0% |
Cost of equity | 5.1% | 7.1% |
Tax rate | 0.6% | 0.9% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 6.7% | 7.0% |
After-tax WACC | 5.1% | 7.1% |
Selected WACC | 6.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
585.SI | Asian Micro Holdings Ltd | 0.03 | -1.65 | -1.61 |
043910.KQ | Nature and Environment Co Ltd | 0.31 | -0.14 | -0.1 |
1650.HK | Hygieia Group Ltd | 0.15 | 0.18 | 0.16 |
556.HK | Pan Asia Environmental Protection Group Ltd | 0.02 | -0.29 | -0.29 |
5CT.SI | Ecowise Holdings Ltd | 0.33 | -0.73 | -0.55 |
8027.HK | KPM Holding Ltd | 0.68 | 0.29 | 0.18 |
BLA.SI | Union Steel Holdings Ltd | 0.76 | 0.51 | 0.29 |
BQC.SI | A-Smart Holdings Ltd | 0.14 | 0.78 | 0.69 |
MCLEAN.KL | Mclean Technologies Bhd | 0.13 | 1.36 | 1.21 |
V3M.SI | Metech International Ltd | 0.01 | 1.45 | 1.44 |
Low | High | |
Unlevered beta | 0.05 | 0.22 |
Relevered beta | 0.06 | 0.21 |
Adjusted relevered beta | 0.37 | 0.47 |
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.