5VC.SI WACC - Weighted Average Cost of Capital

The WACC of KORI Holdings Ltd (5VC.SI) is 5.3%.

The Cost of Equity of KORI Holdings Ltd (5VC.SI) is 5.75%.

The Cost of Debt of KORI Holdings Ltd (5VC.SI) is 4.25%.

	Range	Selected
Cost of equity	4.80% - 6.70%	5.75%
Tax rate	19.10% - 23.50%	21.30%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.5% - 6.1%	5.3%

WACC

5VC.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.41	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	6.70%

Tax rate	19.10%	23.50%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.00%	4.50%

After-tax WACC	4.5%	6.1%


Selected WACC	5.3%

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.