BCD.SI WACC - Weighted Average Cost of Capital

The WACC of China Yuanbang Property Holdings Ltd (BCD.SI) is 7.1%.

The Cost of Equity of China Yuanbang Property Holdings Ltd (BCD.SI) is 29.25%.

The Cost of Debt of China Yuanbang Property Holdings Ltd (BCD.SI) is 5.50%.

	Range	Selected
Cost of equity	16.50% - 42.00%	29.25%
Tax rate	17.00% - 17.00%	17.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.7% - 9.5%	7.1%

WACC

BCD.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.7	6.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.50%	42.00%

Tax rate	17.00%	17.00%
Debt/Equity ratio	8.74	8.74
Cost of debt	4.00%	7.00%

After-tax WACC	4.7%	9.5%


Selected WACC	7.1%

BCD.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 BCD.SI:

cost_of_equity (29.25%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (2.7) + 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.