5NF.SI WACC - Weighted Average Cost of Capital

The WACC of Mencast Holdings Ltd (5NF.SI) is 7.8%.

The Cost of Equity of Mencast Holdings Ltd (5NF.SI) is 19.15%.

The Cost of Debt of Mencast Holdings Ltd (5NF.SI) is 7.20%.

	Range	Selected
Cost of equity	14.80% - 23.50%	19.15%
Tax rate	13.90% - 24.80%	19.35%
Cost of debt	6.40% - 8.00%	7.20%
WACC	6.9% - 8.6%	7.8%

WACC

5NF.SI WACC calculation

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	14.80%	23.50%

Tax rate	13.90%	24.80%
Debt/Equity ratio	5.58	5.58
Cost of debt	6.40%	8.00%

After-tax WACC	6.9%	8.6%


Selected WACC	7.8%

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.