5OT.SI
Singapore Medical Group Ltd
Price:  
0.4 
SGD
Volume:  
317,000
Singapore | Health Care Providers & Services

5OT.SI WACC - Weighted Average Cost of Capital

The WACC of Singapore Medical Group Ltd (5OT.SI) is 7.1%.

The Cost of Equity of Singapore Medical Group Ltd (5OT.SI) is 7.35%.
The Cost of Debt of Singapore Medical Group Ltd (5OT.SI) is 4.35%.

RangeSelected
Cost of equity5.4% - 9.3%7.35%
Tax rate11.2% - 13.3%12.25%
Cost of debt4.0% - 4.7%4.35%
WACC5.2% - 9.0%7.1%
WACC

5OT.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.520.92
Additional risk adjustments0.0%0.5%
Cost of equity5.4%9.3%
Tax rate11.2%13.3%
Debt/Equity ratio
0.070.07
Cost of debt4.0%4.7%
After-tax WACC5.2%9.0%
Selected WACC7.1%

5OT.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 5OT.SI:

cost_of_equity (7.35%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.