B69.SI
Broadway Industrial Group Ltd
Price:  
0.19 
SGD
Volume:  
503,000.00
Singapore | Technology Hardware, Storage & Peripherals
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B69.SI WACC - Weighted Average Cost of Capital

The WACC of Broadway Industrial Group Ltd (B69.SI) is 7.0%.

The Cost of Equity of Broadway Industrial Group Ltd (B69.SI) is 6.90%.
The Cost of Debt of Broadway Industrial Group Ltd (B69.SI) is 8.55%.

Range Selected
Cost of equity 5.60% - 8.20% 6.90%
Tax rate 9.60% - 12.90% 11.25%
Cost of debt 4.00% - 13.10% 8.55%
WACC 5.3% - 8.7% 7.0%
WACC

B69.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.56 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 8.20%
Tax rate 9.60% 12.90%
Debt/Equity ratio 0.18 0.18
Cost of debt 4.00% 13.10%
After-tax WACC 5.3% 8.7%
Selected WACC 7.0%

B69.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 B69.SI:

cost_of_equity (6.90%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.