5IG.SI WACC - Weighted Average Cost of Capital

The WACC of Gallant Venture Ltd (5IG.SI) is 8.4%.

The Cost of Equity of Gallant Venture Ltd (5IG.SI) is 5.50%.

The Cost of Debt of Gallant Venture Ltd (5IG.SI) is 13.45%.

	Range	Selected
Cost of equity	4.10% - 6.90%	5.50%
Tax rate	17.00% - 17.00%	17.00%
Cost of debt	7.20% - 19.70%	13.45%
WACC	5.0% - 11.8%	8.4%

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	0.27	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.10%	6.90%

Tax rate	17.00%	17.00%
Debt/Equity ratio	1.07	1.07
Cost of debt	7.20%	19.70%

After-tax WACC	5.0%	11.8%


Selected WACC	8.4%

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.