5NV.SI WACC - Weighted Average Cost of Capital

The WACC of Chasen Holdings Ltd (5NV.SI) is 7.2%.

The Cost of Equity of Chasen Holdings Ltd (5NV.SI) is 14.45%.

The Cost of Debt of Chasen Holdings Ltd (5NV.SI) is 5.85%.

	Range	Selected
Cost of equity	10.50% - 18.40%	14.45%
Tax rate	10.10% - 17.40%	13.75%
Cost of debt	4.70% - 7.00%	5.85%
WACC	5.7% - 8.7%	7.2%

WACC

5NV.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.53	2.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	18.40%

Tax rate	10.10%	17.40%
Debt/Equity ratio	3.28	3.28
Cost of debt	4.70%	7.00%

After-tax WACC	5.7%	8.7%


Selected WACC	7.2%

5NV.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 5NV.SI:

cost_of_equity (14.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.53) + 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.