BFI.SI WACC - Weighted Average Cost of Capital
The WACC of Tiong Seng Holdings Ltd (BFI.SI) is 9.9%.
| Range | Selected | |
| Cost of equity | 3.5% - 7.0% | 5.25% |
| Tax rate | 2.7% - 3.9% | 3.3% |
| Cost of debt | 4.6% - 19.7% | 12.15% |
| WACC | 4.2% - 15.6% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.15 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.5% | 7.0% |
| Tax rate | 2.7% | 3.9% |
| Debt/Equity ratio | 2.58 | 2.58 |
| Cost of debt | 4.6% | 19.7% |
| After-tax WACC | 4.2% | 15.6% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BFI.SI | Tiong Seng Holdings Ltd | 2.58 | 0.47 | 0.14 |
| 2227.HK | Solis Holdings Ltd | 0.5 | 0.06 | 0.04 |
| 583.SI | Progen Holdings Ltd | 0.19 | 0.32 | 0.27 |
| 5F4.SI | Figtree Holdings Ltd | 0.98 | -0.68 | -0.35 |
| 5UO.SI | Sysma Holdings Ltd | 0.43 | -0.34 | -0.24 |
| 5VC.SI | KORI Holdings Ltd | 0.23 | 1.13 | 0.92 |
| 5VI.SI | Boldtek Holdings Ltd | 2.27 | 0.18 | 0.06 |
| PA3.SI | TA Corporation Ltd | 3.37 | -1.46 | -0.34 |
| S7P.SI | Soilbuild Construction Group Ltd | 0.73 | -0.86 | -0.5 |
| Y06.SI | Green Build Technology Ltd | 0.17 | 1.82 | 1.56 |
| Low | High | |
| Unlevered beta | -0.07 | 0.09 |
| Relevered beta | -0.27 | 0.31 |
| Adjusted relevered beta | 0.15 | 0.54 |
BFI.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 BFI.SI:
cost_of_equity (5.25%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.15) + 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.