5GZ.SI WACC - Weighted Average Cost of Capital

The WACC of HGH Holdings Ltd (5GZ.SI) is 6.7%.

The Cost of Equity of HGH Holdings Ltd (5GZ.SI) is 5.75%.

The Cost of Debt of HGH Holdings Ltd (5GZ.SI) is 13.35%.

	Range	Selected
Cost of equity	4.40% - 7.10%	5.75%
Tax rate	20.60% - 26.40%	23.50%
Cost of debt	4.00% - 22.70%	13.35%
WACC	4.1% - 9.3%	6.7%

WACC

5GZ.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.33	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.40%	7.10%

Tax rate	20.60%	26.40%
Debt/Equity ratio	0.3	0.3
Cost of debt	4.00%	22.70%

After-tax WACC	4.1%	9.3%


Selected WACC	6.7%

5GZ.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 5GZ.SI:

cost_of_equity (5.75%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.