5JS.SI
Indofood Agri Resources Ltd
Price:  
0.32 
SGD
Volume:  
12,100
Singapore | Food Products

5JS.SI WACC - Weighted Average Cost of Capital

The WACC of Indofood Agri Resources Ltd (5JS.SI) is 5.2%.

The Cost of Equity of Indofood Agri Resources Ltd (5JS.SI) is 8.35%.
The Cost of Debt of Indofood Agri Resources Ltd (5JS.SI) is 4.95%.

RangeSelected
Cost of equity6.8% - 9.9%8.35%
Tax rate39.8% - 41.7%40.75%
Cost of debt4.0% - 5.9%4.95%
WACC4.3% - 6.2%5.2%
WACC

5JS.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.811.01
Additional risk adjustments0.0%0.5%
Cost of equity6.8%9.9%
Tax rate39.8%41.7%
Debt/Equity ratio
1.361.36
Cost of debt4.0%5.9%
After-tax WACC4.3%6.2%
Selected WACC5.2%

5JS.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 5JS.SI:

cost_of_equity (8.35%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.81) + 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.