5FX.SI
New Wave Holdings Ltd
Price:  
0.00 
SGD
Volume:  
2,500,000.00
Singapore | Trading Companies & Distributors
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5FX.SI WACC - Weighted Average Cost of Capital

The WACC of New Wave Holdings Ltd (5FX.SI) is 7.5%.

The Cost of Equity of New Wave Holdings Ltd (5FX.SI) is 9.35%.
The Cost of Debt of New Wave Holdings Ltd (5FX.SI) is 5.75%.

Range Selected
Cost of equity 7.10% - 11.60% 9.35%
Tax rate 6.90% - 10.40% 8.65%
Cost of debt 4.50% - 7.00% 5.75%
WACC 5.8% - 9.2% 7.5%
WACC

5FX.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.86 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 11.60%
Tax rate 6.90% 10.40%
Debt/Equity ratio 0.84 0.84
Cost of debt 4.50% 7.00%
After-tax WACC 5.8% 9.2%
Selected WACC 7.5%

5FX.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 5FX.SI:

cost_of_equity (9.35%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.86) + 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.