5H0.SI WACC - Weighted Average Cost of Capital
The WACC of SingHaiyi Group Ltd (5H0.SI) is 10.0%.
| Range | Selected | |
| Cost of equity | 7.1% - 11.4% | 9.25% |
| Tax rate | 14.3% - 16.0% | 15.15% |
| Cost of debt | 4.0% - 20.4% | 12.2% |
| WACC | 4.4% - 15.6% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.87 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 11.4% |
| Tax rate | 14.3% | 16.0% |
| Debt/Equity ratio | 2.64 | 2.64 |
| Cost of debt | 4.0% | 20.4% |
| After-tax WACC | 4.4% | 15.6% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5H0.SI | SingHaiyi Group Ltd | 2.64 | 0.64 | 0.2 |
| 131.HK | Cheuk Nang Holdings Ltd | 1.7 | 0.07 | 0.03 |
| 367.HK | Chuang's Consortium International Ltd | 6.52 | 0.73 | 0.11 |
| 5JK.SI | Hiap Hoe Ltd | 3.13 | -0.04 | -0.01 |
| 5RF.SI | Mercurius Capital Investment Ltd | 0.27 | 0.35 | 0.28 |
| 5UX.SI | Oxley Holdings Ltd | 4.8 | 0.25 | 0.05 |
| 655.HK | Hongkong Chinese Ltd | 1.09 | 0.35 | 0.18 |
| ELTY.JK | Bakrieland Development Tbk PT | 2.62 | 1.23 | 0.38 |
| H19.SI | Hwa Hong Corporation Ltd | 0.3 | 0.14 | 0.11 |
| SJS.VN | Song Da Urban & Industrial Zone Investment and Development JSC | 0.06 | 0.64 | 0.61 |
| Low | High | |
| Unlevered beta | 0.11 | 0.19 |
| Relevered beta | 0.81 | 1.46 |
| Adjusted relevered beta | 0.87 | 1.31 |
5H0.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 5H0.SI:
cost_of_equity (9.25%) = risk_free_rate (3.15%) + equity_risk_premium (5.20%) * adjusted_beta (0.87) + 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.