5IG.SI WACC - Weighted Average Cost of Capital
The WACC of Gallant Venture Ltd (5IG.SI) is 8.4%.
| Range | Selected | |
| Cost of equity | 4.1% - 6.9% | 5.5% |
| Tax rate | 17.0% - 17.0% | 17% |
| Cost of debt | 7.2% - 19.7% | 13.45% |
| WACC | 5.0% - 11.8% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.27 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.1% | 6.9% |
| Tax rate | 17.0% | 17.0% |
| Debt/Equity ratio | 1.07 | 1.07 |
| Cost of debt | 7.2% | 19.7% |
| After-tax WACC | 5.0% | 11.8% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5IG.SI | Gallant Venture Ltd | 1.07 | -0.49 | -0.26 |
| 006730.KQ | Seobu T&D Co Ltd | 1.9 | 1.12 | 0.43 |
| 1872.HK | Guan Chao Holdings Ltd | 0.14 | -0.95 | -0.85 |
| 2788.T | Apple International Co Ltd | 1.72 | 0.96 | 0.39 |
| 42E.SI | Choo Chiang Holdings Ltd | 0.04 | 0.22 | 0.21 |
| 5G1.SI | EuroSports Global Ltd | 0.79 | -0.11 | -0.06 |
| 8418.HK | Optima Automobile Group Holdings Ltd | 0.07 | -0.37 | -0.35 |
| 9818.T | Daimaru Enawin Co Ltd | 0.11 | 0.48 | 0.43 |
| CMV.VN | Camau Trading JSC | 1.03 | -0.07 | -0.04 |
| PERMAJU.KL | Permaju Industries Berhad | 0.35 | 0.16 | 0.12 |
| Low | High | |
| Unlevered beta | -0.05 | 0.16 |
| Relevered beta | -0.09 | 0.3 |
| Adjusted relevered beta | 0.27 | 0.53 |
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 (5.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.27) + 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.