5NF.SI WACC - Weighted Average Cost of Capital
The WACC of Mencast Holdings Ltd (5NF.SI) is 7.8%.
| Range | Selected | |
| Cost of equity | 14.8% - 23.5% | 19.15% |
| Tax rate | 13.9% - 24.8% | 19.35% |
| Cost of debt | 6.4% - 8.0% | 7.2% |
| WACC | 6.9% - 8.6% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 2.38 | 3.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.8% | 23.5% |
| Tax rate | 13.9% | 24.8% |
| Debt/Equity ratio | 5.58 | 5.58 |
| Cost of debt | 6.4% | 8.0% |
| After-tax WACC | 6.9% | 8.6% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5NF.SI | Mencast Holdings Ltd | 5.58 | -0.47 | -0.08 |
| 5G2.SI | Kim Heng Offshore & Marine Holdings Ltd | 1.44 | 0.5 | 0.23 |
| 5OR.SI | Heatec Jietong Holdings Ltd | 1.82 | 0.89 | 0.36 |
| 5WH.SI | Rex International Holding Ltd | 1.11 | 1.53 | 0.79 |
| 6239.T | Nagaoka International Corp | 0.03 | 1.08 | 1.05 |
| BLZ.SI | Advanced Holdings Ltd | 1.06 | 1.9 | 1.01 |
| NO4.SI | Dyna-Mac Holdings Ltd | 0.06 | 0.7 | 0.67 |
| PVC.VN | Petrovietnam Chemical and Services Corp | 0.55 | 1.61 | 1.11 |
| RF7.SI | AMOS Group Ltd | 1.5 | 0.1 | 0.04 |
| SEAMECLTD.NS | Seamec Ltd | 0.15 | 0.85 | 0.76 |
| Low | High | |
| Unlevered beta | 0.54 | 0.77 |
| Relevered beta | 3.06 | 4.34 |
| Adjusted relevered beta | 2.38 | 3.24 |
5NF.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 5NF.SI:
cost_of_equity (19.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (2.38) + 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.