AWX.SI WACC - Weighted Average Cost of Capital
The WACC of Aem Holdings Ltd (AWX.SI) is 10.2%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.5% | 9.1% |
| Tax rate | 17.4% - 18.4% | 17.9% |
| Cost of debt | 5.9% - 26.9% | 16.4% |
| WACC | 7.0% - 13.5% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.98 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.5% |
| Tax rate | 17.4% | 18.4% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 5.9% | 26.9% |
| After-tax WACC | 7.0% | 13.5% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AWX.SI | Aem Holdings Ltd | 0.34 | 1.31 | 1.02 |
| 011930.KS | Shinsung E&G Co Ltd | 0.8 | 1.11 | 0.67 |
| 3413.TW | Foxsemicon Integrated Technology Inc | 0.08 | 1.27 | 1.19 |
| 558.SI | UMS Holdings Ltd | 0.04 | 0.87 | 0.84 |
| 575.SI | ASTI Holdings Ltd | 1 | 1.13 | 0.62 |
| 5DD.SI | Micro-Mechanics Holdings Ltd | 0.01 | 0.81 | 0.81 |
| 5TY.SI | Advanced Systems Automation Ltd | 0.15 | 1.48 | 1.31 |
| 6235.T | Optorun Co Ltd | 0.08 | 1.27 | 1.19 |
| BIX.SI | Ellipsiz Ltd | 0.03 | 0.51 | 0.5 |
| S71.SI | Sunright Ltd | 1.12 | 0.95 | 0.5 |
| Low | High | |
| Unlevered beta | 0.75 | 0.92 |
| Relevered beta | 0.97 | 1.18 |
| Adjusted relevered beta | 0.98 | 1.12 |
AWX.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 AWX.SI:
cost_of_equity (9.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.