AWI.SI WACC - Weighted Average Cost of Capital

The WACC of Thakral Corporation Ltd (AWI.SI) is 5.4%.

The Cost of Equity of Thakral Corporation Ltd (AWI.SI) is 5.45%.

The Cost of Debt of Thakral Corporation Ltd (AWI.SI) is 6.90%.

	Range	Selected
Cost of equity	4.60% - 6.30%	5.45%
Tax rate	21.40% - 25.00%	23.20%
Cost of debt	4.50% - 9.30%	6.90%
WACC	4.3% - 6.4%	5.4%

WACC

AWI.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.37	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.60%	6.30%

Tax rate	21.40%	25.00%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.50%	9.30%

After-tax WACC	4.3%	6.4%


Selected WACC	5.4%

AWI.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 AWI.SI:

cost_of_equity (5.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.