5UA.SI WACC - Weighted Average Cost of Capital

The WACC of Starland Holdings Ltd (5UA.SI) is 29.1%.

The Cost of Equity of Starland Holdings Ltd (5UA.SI) is 5.85%.

The Cost of Debt of Starland Holdings Ltd (5UA.SI) is 68.15%.

	Range	Selected
Cost of equity	5.10% - 6.60%	5.85%
Tax rate	17.00% - 17.00%	17.00%
Cost of debt	19.70% - 116.60%	68.15%
WACC	10.3% - 47.9%	29.1%

WACC

5UA.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.27	0.31

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.10%	6.60%

Tax rate	17.00%	17.00%
Debt/Equity ratio	0.84	0.84
Cost of debt	19.70%	116.60%

After-tax WACC	10.3%	47.9%


Selected WACC	29.1%

5UA.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 5UA.SI:

cost_of_equity (5.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.27) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.