5PC.SI WACC - Weighted Average Cost of Capital
The WACC of Goodland Group Ltd (5PC.SI) is 9.8%.
| Range | Selected | |
| Cost of equity | 4.3% - 6.0% | 5.15% |
| Tax rate | 4.2% - 7.2% | 5.7% |
| Cost of debt | 4.0% - 22.7% | 13.35% |
| WACC | 4.0% - 15.7% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.31 | 0.38 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.3% | 6.0% |
| Tax rate | 4.2% | 7.2% |
| Debt/Equity ratio | 1.78 | 1.78 |
| Cost of debt | 4.0% | 22.7% |
| After-tax WACC | 4.0% | 15.7% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5PC.SI | Goodland Group Ltd | 1.78 | 0.78 | 0.29 |
| 1E6.SI | World Class Global Ltd | 4.72 | 0.13 | 0.02 |
| 1F3.SI | Aspen (Group) Holdings Ltd | 2.62 | 0.67 | 0.19 |
| 1H2.SI | Olive Tree Estates Ltd | 0.61 | -0.3 | -0.19 |
| 40V.SI | Alset International Ltd | 0.01 | 0.01 | 0.01 |
| 5AE.SI | Pollux Properties Ltd | 2.93 | -0.14 | -0.04 |
| 5DM.SI | Ying Li International Real Estate Ltd | 6.82 | -1.1 | -0.15 |
| 5UA.SI | Starland Holdings Ltd | 2.52 | 0.12 | 0.04 |
| BHD.SI | China Mining International Ltd | 0.33 | -0.39 | -0.3 |
| PH0.SI | Hatten Land Ltd | 5.16 | 1.12 | 0.19 |
| Low | High | |
| Unlevered beta | -0.01 | 0.03 |
| Relevered beta | -0.03 | 0.07 |
| Adjusted relevered beta | 0.31 | 0.38 |
5PC.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 5PC.SI:
cost_of_equity (5.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.31) + 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.