5UL.SI
Atlantic Navigation Holdings (Singapore) Ltd
Price:  
0.06 
SGD
Volume:  
200
Singapore | Energy Equipment & Services

5UL.SI WACC - Weighted Average Cost of Capital

The WACC of Atlantic Navigation Holdings (Singapore) Ltd (5UL.SI) is 6.8%.

The Cost of Equity of Atlantic Navigation Holdings (Singapore) Ltd (5UL.SI) is 6.75%.
The Cost of Debt of Atlantic Navigation Holdings (Singapore) Ltd (5UL.SI) is 6.2%.

RangeSelected
Cost of equity5.1% - 8.4%6.75%
Tax rate0.1% - 0.3%0.2%
Cost of debt4.0% - 8.4%6.2%
WACC5.1% - 8.4%6.8%
WACC

5UL.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.470.77
Additional risk adjustments0.0%0.5%
Cost of equity5.1%8.4%
Tax rate0.1%0.3%
Debt/Equity ratio
0.010.01
Cost of debt4.0%8.4%
After-tax WACC5.1%8.4%
Selected WACC6.8%

5UL.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 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.