5G2.SI WACC - Weighted Average Cost of Capital
The WACC of Kim Heng Offshore & Marine Holdings Ltd (5G2.SI) is 5.6%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.2% | 7.95% |
| Tax rate | 32.5% - 43.8% | 38.15% |
| Cost of debt | 5.1% - 8.0% | 6.55% |
| WACC | 4.8% - 6.5% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.78 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.2% |
| Tax rate | 32.5% | 43.8% |
| Debt/Equity ratio | 1.38 | 1.38 |
| Cost of debt | 5.1% | 8.0% |
| After-tax WACC | 4.8% | 6.5% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5G2.SI | Kim Heng Offshore & Marine Holdings Ltd | 1.38 | 0.49 | 0.27 |
| 5WH.SI | Rex International Holding Ltd | 1.09 | 1.55 | 0.94 |
| BLZ.SI | Advanced Holdings Ltd | 1.06 | 1.9 | 1.16 |
| BTP.SI | Baker Technology Ltd | 0.13 | 0.46 | 0.43 |
| C13.SI | CH Offshore Ltd | 0.36 | 0.27 | 0.22 |
| FQ7.SI | Jasper Investments Ltd | 0.01 | -1.83 | -1.82 |
| M05.SI | MTQ Corporation Ltd | 0.6 | 0.39 | 0.29 |
| OVH.KL | Ocean Vantage Holdings Bhd | 0.06 | 0.54 | 0.52 |
| PVE.VN | Petrovietnam Engineering Consultancy JSC | 1.62 | 0.83 | 0.42 |
| T7GLOBAL.KL | T7 Global Bhd | 6.16 | 1.85 | 0.4 |
| Low | High | |
| Unlevered beta | 0.35 | 0.43 |
| Relevered beta | 0.67 | 0.85 |
| Adjusted relevered beta | 0.78 | 0.9 |
5G2.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 5G2.SI:
cost_of_equity (7.95%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.78) + 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.