5WH.SI WACC - Weighted Average Cost of Capital

The WACC of Rex International Holding Ltd (5WH.SI) is 11.1%.

The Cost of Equity of Rex International Holding Ltd (5WH.SI) is 6.85%.

The Cost of Debt of Rex International Holding Ltd (5WH.SI) is 18.45%.

	Range	Selected
Cost of equity	5.90% - 7.80%	6.85%
Tax rate	17.00% - 17.00%	17.00%
Cost of debt	17.20% - 19.70%	18.45%
WACC	10.1% - 12.1%	11.1%

WACC

5WH.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.62	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	7.80%

Tax rate	17.00%	17.00%
Debt/Equity ratio	1.02	1.02
Cost of debt	17.20%	19.70%

After-tax WACC	10.1%	12.1%


Selected WACC	11.1%

5WH.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 5WH.SI:

cost_of_equity (6.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.