BAI.SI
Sevak Ltd
Price:  
0.68 
SGD
Volume:  
200
Singapore | Wireless Telecommunication Services

BAI.SI WACC - Weighted Average Cost of Capital

The WACC of Sevak Ltd (BAI.SI) is 5.8%.

The Cost of Equity of Sevak Ltd (BAI.SI) is 5.8%.
The Cost of Debt of Sevak Ltd (BAI.SI) is 5%.

RangeSelected
Cost of equity4.5% - 7.1%5.8%
Tax rate13.5% - 30.0%21.75%
Cost of debt5.0% - 5.0%5%
WACC4.5% - 7.0%5.8%
WACC

BAI.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.350.55
Additional risk adjustments0.0%0.5%
Cost of equity4.5%7.1%
Tax rate13.5%30.0%
Debt/Equity ratio
0.020.02
Cost of debt5.0%5.0%
After-tax WACC4.5%7.0%
Selected WACC5.8%

BAI.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 BAI.SI:

cost_of_equity (5.80%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.