5WJ.SI WACC - Weighted Average Cost of Capital

The WACC of Moneymax Financial Services Ltd (5WJ.SI) is 6.5%.

The Cost of Equity of Moneymax Financial Services Ltd (5WJ.SI) is 13.55%.

The Cost of Debt of Moneymax Financial Services Ltd (5WJ.SI) is 5.40%.

	Range	Selected
Cost of equity	9.20% - 17.90%	13.55%
Tax rate	18.80% - 20.30%	19.55%
Cost of debt	4.90% - 5.90%	5.40%
WACC	5.2% - 7.8%	6.5%

WACC

5WJ.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.28	2.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	17.90%

Tax rate	18.80%	20.30%
Debt/Equity ratio	3.29	3.29
Cost of debt	4.90%	5.90%

After-tax WACC	5.2%	7.8%


Selected WACC	6.5%

5WJ.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 5WJ.SI:

cost_of_equity (13.55%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.28) + 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.