AOF.SI WACC - Weighted Average Cost of Capital

The WACC of Amplefield Ltd (AOF.SI) is 7.4%.

The Cost of Equity of Amplefield Ltd (AOF.SI) is 7.50%.

The Cost of Debt of Amplefield Ltd (AOF.SI) is 6.85%.

	Range	Selected
Cost of equity	5.30% - 9.70%	7.50%
Tax rate	11.70% - 16.10%	13.90%
Cost of debt	4.00% - 9.70%	6.85%
WACC	5.2% - 9.6%	7.4%

WACC

AOF.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.51	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	9.70%

Tax rate	11.70%	16.10%
Debt/Equity ratio	0.1	0.1
Cost of debt	4.00%	9.70%

After-tax WACC	5.2%	9.6%


Selected WACC	7.4%

AOF.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 AOF.SI:

cost_of_equity (7.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.