5OI.SI WACC - Weighted Average Cost of Capital

The WACC of Japan Foods Holding Ltd (5OI.SI) is 4.8%.

The Cost of Equity of Japan Foods Holding Ltd (5OI.SI) is 5.05%.

The Cost of Debt of Japan Foods Holding Ltd (5OI.SI) is 5.50%.

	Range	Selected
Cost of equity	3.50% - 6.60%	5.05%
Tax rate	14.80% - 17.30%	16.05%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.5% - 6.1%	4.8%

WACC

5OI.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.16	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	3.50%	6.60%

Tax rate	14.80%	17.30%
Debt/Equity ratio	1.35	1.35
Cost of debt	4.00%	7.00%

After-tax WACC	3.5%	6.1%


Selected WACC	4.8%

5OI.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 5OI.SI:

cost_of_equity (5.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.16) + 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.