5RF.SI WACC - Weighted Average Cost of Capital
The WACC of Mercurius Capital Investment Ltd (5RF.SI) is 5.1%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.3% | 5.35% |
| Tax rate | 17.0% - 17.0% | 17% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 5.8% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.34 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.3% |
| Tax rate | 17.0% | 17.0% |
| Debt/Equity ratio | 0.27 | 0.27 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 5.8% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5RF.SI | Mercurius Capital Investment Ltd | 0.27 | 0.35 | 0.28 |
| 115.HK | Grand Field Group Holdings Ltd | 21.72 | 0.31 | 0.02 |
| 526654.BO | Thakkers Developers Ltd | 0.12 | -0.44 | -0.4 |
| 5DM.SI | Ying Li International Real Estate Ltd | 5.58 | -1.03 | -0.18 |
| 5H0.SI | SingHaiyi Group Ltd | 2.64 | 0.64 | 0.2 |
| 5UX.SI | Oxley Holdings Ltd | 3.72 | 0.21 | 0.05 |
| AKKU.JK | Anugerah Kagum Karya Utama Tbk PT | 0.42 | 1.08 | 0.8 |
| AOF.SI | Amplefield Ltd | 0.1 | -0.42 | -0.39 |
| PTL.VN | Petro Capital and Infrastructure Investment JSC | 0.55 | 1.19 | 0.82 |
| S9B.SI | Amcorp Global Ltd | 0.41 | -0.01 | -0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.11 |
| Relevered beta | 0.01 | 0.13 |
| Adjusted relevered beta | 0.34 | 0.42 |
5RF.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 5RF.SI:
cost_of_equity (5.35%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.