BFT.SI WACC - Weighted Average Cost of Capital
The WACC of Fabchem China Ltd (BFT.SI) is 10.9%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.0% | 6.85% |
| Tax rate | 7.6% - 13.8% | 10.7% |
| Cost of debt | 6.3% - 104.7% | 55.5% |
| WACC | 5.7% - 16.1% | 10.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.58 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.0% |
| Tax rate | 7.6% | 13.8% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 6.3% | 104.7% |
| After-tax WACC | 5.7% | 16.1% |
| Selected WACC | 10.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BFT.SI | Fabchem China Ltd | 0.11 | -0.34 | -0.31 |
| 43P.SI | United Global Ltd | 0 | 0.45 | 0.45 |
| 506605.BO | Polychem Ltd | 0.02 | 0.93 | 0.91 |
| 519097.BO | Ritesh International Ltd | 0.28 | 0.5 | 0.4 |
| 524013.BO | Hindustan Fluoro Carbons Ltd | 4.3 | 1.29 | 0.27 |
| 524748.BO | Link Pharmachem Ltd | 0.35 | -0.2 | -0.15 |
| 5AU.SI | AP Oil International Ltd | 0.21 | 0.83 | 0.7 |
| C05.SI | Chemical Industries (Far East) Ltd | 0.16 | 0.17 | 0.15 |
| C8R.SI | Jiutian Chemical Group Ltd | 1.04 | 1.11 | 0.57 |
| SEPOWER.NS | SE Power Ltd | 1.35 | 1.95 | 0.88 |
| Low | High | |
| Unlevered beta | 0.34 | 0.5 |
| Relevered beta | 0.37 | 0.55 |
| Adjusted relevered beta | 0.58 | 0.7 |
BFT.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 BFT.SI:
cost_of_equity (6.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.58) + 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.