5FW.SI
Acesian Partners Ltd
Price:  
0.03 
SGD
Volume:  
231,000.00
Singapore | Machinery
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5FW.SI WACC - Weighted Average Cost of Capital

The WACC of Acesian Partners Ltd (5FW.SI) is 5.1%.

The Cost of Equity of Acesian Partners Ltd (5FW.SI) is 5.10%.
The Cost of Debt of Acesian Partners Ltd (5FW.SI) is 5.60%.

Range Selected
Cost of equity 3.70% - 6.50% 5.10%
Tax rate 10.50% - 11.90% 11.20%
Cost of debt 4.20% - 7.00% 5.60%
WACC 3.7% - 6.4% 5.1%
WACC

5FW.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.2 0.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 3.70% 6.50%
Tax rate 10.50% 11.90%
Debt/Equity ratio 0.08 0.08
Cost of debt 4.20% 7.00%
After-tax WACC 3.7% 6.4%
Selected WACC 5.1%

5FW.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 5FW.SI:

cost_of_equity (5.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.2) + 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.