BKV.SI WACC - Weighted Average Cost of Capital

The WACC of Dukang Distillers Holdings Ltd (BKV.SI) is 8.0%.

The Cost of Equity of Dukang Distillers Holdings Ltd (BKV.SI) is 8.60%.

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

	Range	Selected
Cost of equity	6.60% - 10.60%	8.60%
Tax rate	5.30% - 11.30%	8.30%
Cost of debt	6.80% - 7.00%	6.90%
WACC	6.6% - 9.5%	8.0%

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	0.76	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.60%

Tax rate	5.30%	11.30%
Debt/Equity ratio	0.33	0.33
Cost of debt	6.80%	7.00%

After-tax WACC	6.6%	9.5%


Selected WACC	8.0%

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 (8.60%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.