AWK.SI WACC - Weighted Average Cost of Capital

The WACC of Fuxing China Group Ltd (AWK.SI) is 7.3%.

The Cost of Equity of Fuxing China Group Ltd (AWK.SI) is 20.60%.

The Cost of Debt of Fuxing China Group Ltd (AWK.SI) is 7.60%.

	Range	Selected
Cost of equity	12.20% - 29.00%	20.60%
Tax rate	8.80% - 23.40%	16.10%
Cost of debt	4.00% - 11.20%	7.60%
WACC	4.3% - 10.2%	7.3%

WACC

AWK.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.87	4.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	29.00%

Tax rate	8.80%	23.40%
Debt/Equity ratio	11.53	11.53
Cost of debt	4.00%	11.20%

After-tax WACC	4.3%	10.2%


Selected WACC	7.3%

AWK.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 AWK.SI:

cost_of_equity (20.60%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.87) + 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.