5CT.SI WACC - Weighted Average Cost of Capital

The WACC of Ecowise Holdings Ltd (5CT.SI) is 7.1%.

The Cost of Equity of Ecowise Holdings Ltd (5CT.SI) is 7.75%.

The Cost of Debt of Ecowise Holdings Ltd (5CT.SI) is 5.90%.

	Range	Selected
Cost of equity	6.30% - 9.20%	7.75%
Tax rate	3.90% - 19.10%	11.50%
Cost of debt	5.50% - 6.30%	5.90%
WACC	6.0% - 8.1%	7.1%

WACC

5CT.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.71	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	9.20%

Tax rate	3.90%	19.10%
Debt/Equity ratio	0.36	0.36
Cost of debt	5.50%	6.30%

After-tax WACC	6.0%	8.1%


Selected WACC	7.1%

5CT.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 5CT.SI:

cost_of_equity (7.75%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.