BFU.SI WACC - Weighted Average Cost of Capital
The WACC of Tye Soon Ltd (BFU.SI) is 5.5%.
| Range | Selected | |
| Cost of equity | 8.4% - 14.8% | 11.6% |
| Tax rate | 25.6% - 26.1% | 25.85% |
| Cost of debt | 4.0% - 6.3% | 5.15% |
| WACC | 4.2% - 6.9% | 5.5% |
| 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 | 8.4% | 14.8% |
| Tax rate | 25.6% | 26.1% |
| Debt/Equity ratio | 3.5 | 3.5 |
| Cost of debt | 4.0% | 6.3% |
| After-tax WACC | 4.2% | 6.9% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BFU.SI | Tye Soon Ltd | 3.5 | 0.08 | 0.02 |
| 039980.KQ | Leenos Corp | 0.05 | 1.04 | 1 |
| 370.HK | China Best Group Holding Ltd | 0.1 | 0.72 | 0.67 |
| 5LE.SI | Sitra Holdings (International) Ltd | 0.01 | 0.6 | 0.59 |
| 600250.SS | Nanjing Textiles Import & Export Corp Ltd | 0.14 | 1.28 | 1.15 |
| 7477.T | Muraki Corp | 0 | 0.65 | 0.65 |
| 8126.HK | G.A. Holdings LTD | 45.88 | -0.33 | -0.01 |
| 8451.HK | Sunlight (1977) Holdings Ltd | 0.02 | 0.29 | 0.28 |
| 9885.T | Charle Co Ltd | 0 | 0.35 | 0.35 |
| S29.SI | Stamford Tyres Corporation Ltd | 1.62 | -0.12 | -0.05 |
| Low | High | |
| Unlevered beta | 0.32 | 0.62 |
| Relevered beta | 1.16 | 2.21 |
| Adjusted relevered beta | 1.11 | 1.81 |
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.