BHO.SI WACC - Weighted Average Cost of Capital

The WACC of Top Global Ltd (BHO.SI) is 7.1%.

The Cost of Equity of Top Global Ltd (BHO.SI) is 6.25%.

The Cost of Debt of Top Global Ltd (BHO.SI) is 10.80%.

	Range	Selected
Cost of equity	5.40% - 7.10%	6.25%
Tax rate	13.40% - 37.00%	25.20%
Cost of debt	9.20% - 12.40%	10.80%
WACC	6.8% - 7.5%	7.1%

WACC

BHO.SI WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	4.7%	5.7%
Adjusted beta	0.42	0.46

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	7.10%

Tax rate	13.40%	37.00%
Debt/Equity ratio	1.16	1.16
Cost of debt	9.20%	12.40%

After-tax WACC	6.8%	7.5%


Selected WACC	7.1%

BHO.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 BHO.SI:

cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (5.20%) * adjusted_beta (0.42) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.