A30.SI WACC - Weighted Average Cost of Capital

The WACC of Aspial Corporation Ltd (A30.SI) is 5.3%.

The Cost of Equity of Aspial Corporation Ltd (A30.SI) is 11.85%.

The Cost of Debt of Aspial Corporation Ltd (A30.SI) is 7.60%.

	Range	Selected
Cost of equity	8.60% - 15.10%	11.85%
Tax rate	33.80% - 48.20%	41.00%
Cost of debt	4.00% - 11.20%	7.60%
WACC	3.5% - 7.1%	5.3%

WACC

A30.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.16	1.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	15.10%

Tax rate	33.80%	48.20%
Debt/Equity ratio	6.22	6.22
Cost of debt	4.00%	11.20%

After-tax WACC	3.5%	7.1%


Selected WACC	5.3%

A30.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 A30.SI:

cost_of_equity (11.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.16) + 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.