BKV.SI WACC - Weighted Average Cost of Capital

The WACC of Dukang Distillers Holdings Ltd (BKV.SI) is 8.5%.

The Cost of Equity of Dukang Distillers Holdings Ltd (BKV.SI) is 9.40%.

The Cost of Debt of Dukang Distillers Holdings Ltd (BKV.SI) is 6.90%.

	Range	Selected
Cost of equity	7.90% - 10.90%	9.40%
Tax rate	5.30% - 11.30%	8.30%
Cost of debt	6.80% - 7.00%	6.90%
WACC	7.5% - 9.6%	8.5%

WACC

BKV.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.02	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.90%

Tax rate	5.30%	11.30%
Debt/Equity ratio	0.41	0.41
Cost of debt	6.80%	7.00%

After-tax WACC	7.5%	9.6%


Selected WACC	8.5%

BKV.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 BKV.SI:

cost_of_equity (9.40%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.02) + 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.