AYN.SI WACC - Weighted Average Cost of Capital

The WACC of Global Testing Corporation Ltd (AYN.SI) is 9.2%.

The Cost of Equity of Global Testing Corporation Ltd (AYN.SI) is 9.20%.

The Cost of Debt of Global Testing Corporation Ltd (AYN.SI) is 4.25%.

	Range	Selected
Cost of equity	7.60% - 10.80%	9.20%
Tax rate	10.50% - 13.40%	11.95%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.6% - 10.7%	9.2%

WACC

AYN.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.97	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.80%

Tax rate	10.50%	13.40%
Debt/Equity ratio	0	0
Cost of debt	4.00%	4.50%

After-tax WACC	7.6%	10.7%


Selected WACC	9.2%

AYN.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 AYN.SI:

cost_of_equity (9.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.97) + 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.