AOF.SI WACC - Weighted Average Cost of Capital
The WACC of Amplefield Ltd (AOF.SI) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.8% | 7.1% |
| Tax rate | 11.7% - 16.1% | 13.9% |
| Cost of debt | 4.0% - 9.7% | 6.85% |
| WACC | 5.2% - 8.7% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.52 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.8% |
| Tax rate | 11.7% | 16.1% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 9.7% |
| After-tax WACC | 5.2% | 8.7% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AOF.SI | Amplefield Ltd | 0.1 | -0.42 | -0.39 |
| AKKU.JK | Anugerah Kagum Karya Utama Tbk PT | 0.42 | 1.08 | 0.8 |
| ASIAPAC.KL | Asian Pac Holdings Bhd | 3.67 | 0.3 | 0.07 |
| BAPI.JK | Bhakti Agung Propertindo PT Tbk | 2.95 | 0.93 | 0.27 |
| BCB.KL | BCB Bhd | 2.02 | 0.05 | 0.02 |
| LBICAP.KL | Lbi Capital Bhd | 0.19 | 0.78 | 0.67 |
| MJPERAK.KL | Majuperak Holdings Bhd | 0.37 | 0.92 | 0.7 |
| PTL.VN | Petro Capital and Infrastructure Investment JSC | 0.55 | 1.19 | 0.82 |
| S&FCAP.KL | S & F Capital Bhd | 0.01 | 1.94 | 1.91 |
| SDRED.KL | Selangor Dredging Bhd | 1.82 | 0.63 | 0.25 |
| Low | High | |
| Unlevered beta | 0.26 | 0.69 |
| Relevered beta | 0.28 | 0.75 |
| Adjusted relevered beta | 0.52 | 0.83 |
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 (7.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.