AXB.SI WACC - Weighted Average Cost of Capital

The WACC of Yongnam Holdings Ltd (AXB.SI) is 6.5%.

The Cost of Equity of Yongnam Holdings Ltd (AXB.SI) is 7.45%.

The Cost of Debt of Yongnam Holdings Ltd (AXB.SI) is 6.85%.

	Range	Selected
Cost of equity	6.20% - 8.70%	7.45%
Tax rate	4.70% - 7.80%	6.25%
Cost of debt	6.70% - 7.00%	6.85%
WACC	6.4% - 6.7%	6.5%

WACC

AXB.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.68	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.70%

Tax rate	4.70%	7.80%
Debt/Equity ratio	7.88	7.88
Cost of debt	6.70%	7.00%

After-tax WACC	6.4%	6.7%


Selected WACC	6.5%

AXB.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 AXB.SI:

cost_of_equity (7.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.