5OC.SI WACC - Weighted Average Cost of Capital

The WACC of Koyo International Ltd (5OC.SI) is 7.1%.

The Cost of Equity of Koyo International Ltd (5OC.SI) is 8.20%.

The Cost of Debt of Koyo International Ltd (5OC.SI) is 5.40%.

	Range	Selected
Cost of equity	6.30% - 10.10%	8.20%
Tax rate	1.70% - 4.80%	3.25%
Cost of debt	4.90% - 5.90%	5.40%
WACC	5.8% - 8.4%	7.1%

WACC

5OC.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.71	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	10.10%

Tax rate	1.70%	4.80%
Debt/Equity ratio	0.61	0.61
Cost of debt	4.90%	5.90%

After-tax WACC	5.8%	8.4%


Selected WACC	7.1%

5OC.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 5OC.SI:

cost_of_equity (8.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.