AZA.SI WACC - Weighted Average Cost of Capital

The WACC of IPC Corporation Ltd (AZA.SI) is 6.0%.

The Cost of Equity of IPC Corporation Ltd (AZA.SI) is 5.70%.

The Cost of Debt of IPC Corporation Ltd (AZA.SI) is 6.70%.

	Range	Selected
Cost of equity	4.90% - 6.50%	5.70%
Tax rate	0.50% - 2.10%	1.30%
Cost of debt	6.40% - 7.00%	6.70%
WACC	5.4% - 6.6%	6.0%

WACC

AZA.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.33	0.38

Additional risk adjustments	0.5%	1.0%
Cost of equity	4.90%	6.50%

Tax rate	0.50%	2.10%
Debt/Equity ratio	0.52	0.52
Cost of debt	6.40%	7.00%

After-tax WACC	5.4%	6.6%


Selected WACC	6.0%

AZA.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 AZA.SI:

cost_of_equity (5.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.