5EL.SI
Lasseters International Holdings Ltd
Price:  
0.06 
SGD
Volume:  
1,877,000.00
Malaysia | Hotels, Restaurants & Leisure
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5EL.SI WACC - Weighted Average Cost of Capital

The WACC of Lasseters International Holdings Ltd (5EL.SI) is 5.4%.

The Cost of Equity of Lasseters International Holdings Ltd (5EL.SI) is 6.15%.
The Cost of Debt of Lasseters International Holdings Ltd (5EL.SI) is 6.00%.

Range Selected
Cost of equity 4.90% - 7.40% 6.15%
Tax rate 9.40% - 23.80% 16.60%
Cost of debt 5.00% - 7.00% 6.00%
WACC 4.6% - 6.1% 5.4%
WACC

5EL.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.42 0.6
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 7.40%
Tax rate 9.40% 23.80%
Debt/Equity ratio 1.72 1.72
Cost of debt 5.00% 7.00%
After-tax WACC 4.6% 6.1%
Selected WACC 5.4%

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 (6.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.