5EL.SI WACC - Weighted Average Cost of Capital
The WACC of Lasseters International Holdings Ltd (5EL.SI) is 5.3%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.3% | 6.1% |
| Tax rate | 9.4% - 23.8% | 16.6% |
| Cost of debt | 5.0% - 7.0% | 6% |
| WACC | 4.6% - 6.0% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.43 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.3% |
| Tax rate | 9.4% | 23.8% |
| Debt/Equity ratio | 1.72 | 1.72 |
| Cost of debt | 5.0% | 7.0% |
| After-tax WACC | 4.6% | 6.0% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5EL.SI | Lasseters International Holdings Ltd | 1.72 | 0.91 | 0.35 |
| 1245.HK | Niraku GC Holdings Inc | 7.6 | 0.21 | 0.03 |
| 1655.HK | Okura Holdings Ltd | 5.71 | 0.36 | 0.06 |
| 959.HK | Century Entertainment International Holdings Ltd | 1.6 | -0.89 | -0.36 |
| BJLAND.KL | Berjaya Land Bhd | 3.82 | 0.95 | 0.21 |
| BJTOTO.KL | Berjaya Sports Toto Bhd | 0.54 | 0.15 | 0.1 |
| MAGNUM.KL | Magnum Bhd | 0.39 | 0.85 | 0.63 |
| OLYMPIA.KL | Olympia Industries Bhd | 3.34 | 0.23 | 0.06 |
| PBH.AX | Pointsbet Holdings Ltd | 0.01 | -0.09 | -0.09 |
| RGB.KL | RGB International Bhd | 0.01 | 1.41 | 1.4 |
| Low | High | |
| Unlevered beta | 0.06 | 0.15 |
| Relevered beta | 0.15 | 0.37 |
| Adjusted relevered beta | 0.43 | 0.58 |
5EL.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 5EL.SI:
cost_of_equity (6.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.