5IG.SI WACC - Weighted Average Cost of Capital

The WACC of Gallant Venture Ltd (5IG.SI) is 10.6%.

The Cost of Equity of Gallant Venture Ltd (5IG.SI) is 6.45%.

The Cost of Debt of Gallant Venture Ltd (5IG.SI) is 15.25%.

	Range	Selected
Cost of equity	5.10% - 7.80%	6.45%
Tax rate	17.00% - 17.00%	17.00%
Cost of debt	7.80% - 22.70%	15.25%
WACC	6.0% - 15.1%	10.6%

WACC

5IG.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.28	0.51

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.10%	7.80%

Tax rate	17.00%	17.00%
Debt/Equity ratio	1.98	1.98
Cost of debt	7.80%	22.70%

After-tax WACC	6.0%	15.1%


Selected WACC	10.6%

5IG.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 5IG.SI:

cost_of_equity (6.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.28) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.