5VC.SI WACC - Weighted Average Cost of Capital
The WACC of KORI Holdings Ltd (5VC.SI) is 5.3%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.7% | 5.75% |
| Tax rate | 19.1% - 23.5% | 21.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.5% - 6.1% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.7% |
| Tax rate | 19.1% | 23.5% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.5% | 6.1% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5VC.SI | KORI Holdings Ltd | 0.23 | 1.13 | 0.95 |
| 566.SI | SHS Holdings Ltd | 0.18 | 0.13 | 0.12 |
| 583.SI | Progen Holdings Ltd | 0.19 | 0.32 | 0.28 |
| 5CF.SI | OKP Holdings Ltd | 0.15 | -0.26 | -0.23 |
| 5F4.SI | Figtree Holdings Ltd | 0.98 | -0.68 | -0.39 |
| 5UO.SI | Sysma Holdings Ltd | 0.43 | -0.34 | -0.26 |
| 5VI.SI | Boldtek Holdings Ltd | 2.27 | 0.18 | 0.07 |
| BBP.SI | Hor Kew Corporation Ltd | 1.05 | 0.86 | 0.47 |
| BFI.SI | Tiong Seng Holdings Ltd | 2.58 | 0.47 | 0.16 |
| Y06.SI | Green Build Technology Ltd | 0.17 | 1.82 | 1.61 |
| Low | High | |
| Unlevered beta | 0.1 | 0.2 |
| Relevered beta | 0.12 | 0.24 |
| Adjusted relevered beta | 0.41 | 0.49 |
5VC.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 5VC.SI:
cost_of_equity (5.75%) = 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.