5EG.SI
Zhongxin Fruit and Juice Ltd
Price:  
0.03 
SGD
Volume:  
502,300
Singapore | Food Products

5EG.SI WACC - Weighted Average Cost of Capital

The WACC of Zhongxin Fruit and Juice Ltd (5EG.SI) is 5.4%.

The Cost of Equity of Zhongxin Fruit and Juice Ltd (5EG.SI) is 6.3%.
The Cost of Debt of Zhongxin Fruit and Juice Ltd (5EG.SI) is 4.25%.

RangeSelected
Cost of equity5.0% - 7.6%6.3%
Tax rate10.7% - 16.4%13.55%
Cost of debt4.0% - 4.5%4.25%
WACC4.5% - 6.3%5.4%
WACC

5EG.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.450.63
Additional risk adjustments0.0%0.5%
Cost of equity5.0%7.6%
Tax rate10.7%16.4%
Debt/Equity ratio
0.480.48
Cost of debt4.0%4.5%
After-tax WACC4.5%6.3%
Selected WACC5.4%

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 (6.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.