BFU.SI
Tye Soon Ltd
Price:  
0.28 
SGD
Volume:  
3,300.00
Singapore | Distributors
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BFU.SI WACC - Weighted Average Cost of Capital

The WACC of Tye Soon Ltd (BFU.SI) is 5.5%.

The Cost of Equity of Tye Soon Ltd (BFU.SI) is 11.60%.
The Cost of Debt of Tye Soon Ltd (BFU.SI) is 5.15%.

Range Selected
Cost of equity 8.40% - 14.80% 11.60%
Tax rate 25.60% - 26.10% 25.85%
Cost of debt 4.00% - 6.30% 5.15%
WACC 4.2% - 6.9% 5.5%
WACC

BFU.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.11 1.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 14.80%
Tax rate 25.60% 26.10%
Debt/Equity ratio 3.5 3.5
Cost of debt 4.00% 6.30%
After-tax WACC 4.2% 6.9%
Selected WACC 5.5%

BFU.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 BFU.SI:

cost_of_equity (11.60%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.11) + 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.