5AE.SI WACC - Weighted Average Cost of Capital
The WACC of Pollux Properties Ltd (5AE.SI) is 6.1%.
| Range | Selected | |
| Cost of equity | 4.6% - 7.5% | 6.05% |
| Tax rate | 21.5% - 36.5% | 29% |
| Cost of debt | 4.0% - 14.5% | 9.25% |
| WACC | 3.5% - 8.8% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.27 | 0.54 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 4.6% | 7.5% |
| Tax rate | 21.5% | 36.5% |
| Debt/Equity ratio | 2.93 | 2.93 |
| Cost of debt | 4.0% | 14.5% |
| After-tax WACC | 3.5% | 8.8% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5AE.SI | Pollux Properties Ltd | 2.93 | -0.14 | -0.04 |
| 1F3.SI | Aspen (Group) Holdings Ltd | 2.74 | 0.66 | 0.21 |
| 1H2.SI | Olive Tree Estates Ltd | 0.6 | -0.31 | -0.21 |
| 1J0.SI | SLB Development Ltd | 0.64 | -0.06 | -0.04 |
| 40V.SI | Alset International Ltd | 0.01 | 0.02 | 0.02 |
| 5DM.SI | Ying Li International Real Estate Ltd | 5.98 | -1.07 | -0.19 |
| 5PC.SI | Goodland Group Ltd | 1.78 | 0.81 | 0.34 |
| BHO.SI | Top Global Ltd | 1.16 | 1.4 | 0.74 |
| PH0.SI | Hatten Land Ltd | 5.16 | 1.12 | 0.22 |
| S9B.SI | Amcorp Global Ltd | 0.38 | -0.02 | -0.02 |
| Low | High | |
| Unlevered beta | -0.03 | 0.09 |
| Relevered beta | -0.09 | 0.31 |
| Adjusted relevered beta | 0.27 | 0.54 |
5AE.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 5AE.SI:
cost_of_equity (6.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.27) + 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.