5DD.SI WACC - Weighted Average Cost of Capital
The WACC of Micro-Mechanics Holdings Ltd (5DD.SI) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.1% | 8% |
| Tax rate | 23.9% - 25.9% | 24.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.8% - 9.1% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.82 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.1% |
| Tax rate | 23.9% | 25.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.8% | 9.1% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5DD.SI | Micro-Mechanics Holdings Ltd | 0.01 | 0.81 | 0.8 |
| 064290.KQ | Intekplus Co Ltd | 0.19 | 1.63 | 1.43 |
| 144960.KQ | New Power Plasma Co Ltd | 1.27 | 1.51 | 0.77 |
| 187870.KQ | Device ENG Co Ltd | 0.25 | 0.64 | 0.54 |
| 558.SI | UMS Holdings Ltd | 0.04 | 0.88 | 0.85 |
| 575.SI | ASTI Holdings Ltd | 1 | 1.13 | 0.64 |
| 5TY.SI | Advanced Systems Automation Ltd | 0.15 | 1.48 | 1.32 |
| AWX.SI | Aem Holdings Ltd | 0.32 | 1.28 | 1.03 |
| BIX.SI | Ellipsiz Ltd | 0.03 | 0.51 | 0.5 |
| S71.SI | Sunright Ltd | 1.1 | 0.97 | 0.53 |
| Low | High | |
| Unlevered beta | 0.72 | 0.82 |
| Relevered beta | 0.73 | 0.82 |
| Adjusted relevered beta | 0.82 | 0.88 |
5DD.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 5DD.SI:
cost_of_equity (8.00%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.82) + 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.