The WACC of Atlantic Navigation Holdings (Singapore) Ltd (5UL.SI) is 6.8%.
Range | Selected | |
Cost of equity | 5.1% - 8.4% | 6.75% |
Tax rate | 0.1% - 0.3% | 0.2% |
Cost of debt | 4.0% - 8.4% | 6.2% |
WACC | 5.1% - 8.4% | 6.8% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.47 | 0.77 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.1% | 8.4% |
Tax rate | 0.1% | 0.3% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.0% | 8.4% |
After-tax WACC | 5.1% | 8.4% |
Selected WACC | 6.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
5UL.SI | Atlantic Navigation Holdings (Singapore) Ltd | 0.01 | 0.28 | 0.27 |
531471.BO | Duke Offshore Ltd | 0.01 | 1.39 | 1.38 |
5WH.SI | Rex International Holding Ltd | 0.82 | 1.17 | 0.64 |
B9S.SI | Cosmosteel Holdings Ltd | 0.43 | 0.15 | 0.1 |
BLH.SI | Hai Leck Holdings Ltd | 0.03 | -0.13 | -0.13 |
BLZ.SI | Advanced Holdings Ltd | 1.02 | 1.97 | 0.98 |
GLOBALVECT.NS | Global Vectra Helicorp Ltd | 1.23 | 1.6 | 0.72 |
NO4.SI | Dyna-Mac Holdings Ltd | 0.06 | 0.7 | 0.66 |
RF7.SI | AMOS Group Ltd | 1.5 | 0.1 | 0.04 |
WPC.SI | Vallianz Holdings Ltd | 4.62 | 0.57 | 0.1 |
Low | High | |
Unlevered beta | 0.21 | 0.65 |
Relevered beta | 0.21 | 0.66 |
Adjusted relevered beta | 0.47 | 0.77 |
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 5UL.SI:
cost_of_equity (6.75%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.