5SR.SI WACC - Weighted Average Cost of Capital
The WACC of Zhongmin Baihui Retail Group Ltd (5SR.SI) is 5.9%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.9% | 5.85% |
| Tax rate | 24.2% - 40.7% | 32.45% |
| Cost of debt | 4.2% - 14.5% | 9.35% |
| WACC | 4.0% - 7.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.9% |
| Tax rate | 24.2% | 40.7% |
| Debt/Equity ratio | 0.99 | 0.99 |
| Cost of debt | 4.2% | 14.5% |
| After-tax WACC | 4.0% | 7.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5SR.SI | Zhongmin Baihui Retail Group Ltd | 0.99 | -0.26 | -0.15 |
| 006370.KS | Daegu Department Store Co Ltd | 4.16 | 0.01 | 0 |
| 019010.KQ | VenueG Co Ltd | 1.94 | 0.39 | 0.17 |
| 244.HK | The Sincere Company Ltd | 0.56 | -0.02 | -0.01 |
| 2910.TW | Tonlin Department Store Co Ltd | 0.72 | 0.25 | 0.16 |
| 3536.T | Axas Holdings Co Ltd | 3.43 | 0.39 | 0.11 |
| I15.SI | Isetan (Singapore) Ltd | 0.09 | -0.32 | -0.3 |
| M01.SI | Metro Holdings Ltd | 1.96 | 0.52 | 0.22 |
| O9E.SI | Parkson Retail Asia Ltd | 1.59 | 0.92 | 0.43 |
| V2RETAIL.NS | V2 Retail Ltd | 0.08 | 0.72 | 0.68 |
| Low | High | |
| Unlevered beta | 0.07 | 0.16 |
| Relevered beta | 0.12 | 0.28 |
| Adjusted relevered beta | 0.41 | 0.52 |
5SR.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 5SR.SI:
cost_of_equity (5.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.