5EG.SI WACC - Weighted Average Cost of Capital

The WACC of Zhongxin Fruit and Juice Ltd (5EG.SI) is 6.0%.

The Cost of Equity of Zhongxin Fruit and Juice Ltd (5EG.SI) is 7.55%.

The Cost of Debt of Zhongxin Fruit and Juice Ltd (5EG.SI) is 4.25%.

	Range	Selected
Cost of equity	6.40% - 8.70%	7.55%
Tax rate	6.00% - 9.90%	7.95%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.3% - 6.7%	6.0%

WACC

5EG.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.73	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.70%

Tax rate	6.00%	9.90%
Debt/Equity ratio	0.76	0.76
Cost of debt	4.00%	4.50%

After-tax WACC	5.3%	6.7%


Selected WACC	6.0%

5EG.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 5EG.SI:

cost_of_equity (7.55%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.73) + 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.