5NG.SI WACC - Weighted Average Cost of Capital

The WACC of Healthway Medical Corporation Ltd (5NG.SI) is 7.5%.

The Cost of Equity of Healthway Medical Corporation Ltd (5NG.SI) is 5.30%.

The Cost of Debt of Healthway Medical Corporation Ltd (5NG.SI) is 31.30%.

	Range	Selected
Cost of equity	4.40% - 6.20%	5.30%
Tax rate	3.60% - 8.00%	5.80%
Cost of debt	4.00% - 58.60%	31.30%
WACC	4.4% - 10.7%	7.5%

WACC

5NG.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.34	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.40%	6.20%

Tax rate	3.60%	8.00%
Debt/Equity ratio	0.1	0.1
Cost of debt	4.00%	58.60%

After-tax WACC	4.4%	10.7%


Selected WACC	7.5%

5NG.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 5NG.SI:

cost_of_equity (5.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.