BFT.SI WACC - Weighted Average Cost of Capital

The WACC of Fabchem China Ltd (BFT.SI) is 10.9%.

The Cost of Equity of Fabchem China Ltd (BFT.SI) is 6.85%.

The Cost of Debt of Fabchem China Ltd (BFT.SI) is 55.50%.

	Range	Selected
Cost of equity	5.70% - 8.00%	6.85%
Tax rate	7.60% - 13.80%	10.70%
Cost of debt	6.30% - 104.70%	55.50%
WACC	5.7% - 16.1%	10.9%

WACC

BFT.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.58	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.00%

Tax rate	7.60%	13.80%
Debt/Equity ratio	0.11	0.11
Cost of debt	6.30%	104.70%

After-tax WACC	5.7%	16.1%


Selected WACC	10.9%

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.