8AZ.SI WACC - Weighted Average Cost of Capital
The WACC of Aztech Global Ltd (8AZ.SI) is 5.0%.
| Range | Selected | |
| Cost of equity | 4.4% - 5.7% | 5.05% |
| Tax rate | 14.9% - 16.4% | 15.65% |
| Cost of debt | 4.0% - 6.0% | 5% |
| WACC | 4.3% - 5.7% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 5.7% |
| Tax rate | 14.9% | 16.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 6.0% |
| After-tax WACC | 4.3% | 5.7% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8AZ.SI | Aztech Global Ltd | 0.04 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0 |
| Relevered beta | 0 | 0 |
| Adjusted relevered beta | 0.33 | 0.33 |
8AZ.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 8AZ.SI:
cost_of_equity (5.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.