5UF.SI WACC - Weighted Average Cost of Capital

The WACC of Maxi-Cash Financial Services Corporation Ltd (5UF.SI) is 5.3%.

The Cost of Equity of Maxi-Cash Financial Services Corporation Ltd (5UF.SI) is 8.05%.

The Cost of Debt of Maxi-Cash Financial Services Corporation Ltd (5UF.SI) is 4.35%.

	Range	Selected
Cost of equity	7.00% - 9.10%	8.05%
Tax rate	17.50% - 19.80%	18.65%
Cost of debt	4.20% - 4.50%	4.35%
WACC	4.8% - 5.8%	5.3%

WACC

5UF.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.83	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	9.10%

Tax rate	17.50%	19.80%
Debt/Equity ratio	1.53	1.53
Cost of debt	4.20%	4.50%

After-tax WACC	4.8%	5.8%


Selected WACC	5.3%

5UF.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 5UF.SI:

cost_of_equity (8.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.83) + 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.