5IF.SI WACC - Weighted Average Cost of Capital

The WACC of Natural Cool Holdings Ltd (5IF.SI) is 9.5%.

The Cost of Equity of Natural Cool Holdings Ltd (5IF.SI) is 6.25%.

The Cost of Debt of Natural Cool Holdings Ltd (5IF.SI) is 13.35%.

	Range	Selected
Cost of equity	5.10% - 7.40%	6.25%
Tax rate	16.20% - 23.30%	19.75%
Cost of debt	4.00% - 22.70%	13.35%
WACC	3.7% - 15.4%	9.5%

WACC

5IF.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.47	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	7.40%

Tax rate	16.20%	23.30%
Debt/Equity ratio	3.96	3.96
Cost of debt	4.00%	22.70%

After-tax WACC	3.7%	15.4%


Selected WACC	9.5%

5IF.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 5IF.SI:

cost_of_equity (6.25%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.