BLH.SI WACC - Weighted Average Cost of Capital
The WACC of Hai Leck Holdings Ltd (BLH.SI) is 5.8%.
| Range | Selected | |
| Cost of equity | 4.7% - 7.0% | 5.85% |
| Tax rate | 18.7% - 21.4% | 20.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.9% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.4 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 7.0% |
| Tax rate | 18.7% | 21.4% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.9% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BLH.SI | Hai Leck Holdings Ltd | 0.03 | -0.14 | -0.14 |
| 1586.HK | China Leon Inspection Holding Ltd | 0.08 | -0.07 | -0.07 |
| 5NF.SI | Mencast Holdings Ltd | 4.93 | -0.5 | -0.1 |
| 5UL.SI | Atlantic Navigation Holdings (Singapore) Ltd | 0.01 | 0.3 | 0.3 |
| B9S.SI | Cosmosteel Holdings Ltd | 0.43 | 0.19 | 0.14 |
| BLZ.SI | Advanced Holdings Ltd | 1.01 | 1.91 | 1.05 |
| BTP.SI | Baker Technology Ltd | 0.13 | 0.45 | 0.41 |
| M05.SI | MTQ Corporation Ltd | 0.54 | 0.47 | 0.33 |
| NO4.SI | Dyna-Mac Holdings Ltd | 0.06 | 0.7 | 0.67 |
| RF7.SI | AMOS Group Ltd | 1.5 | 0.1 | 0.04 |
| Low | High | |
| Unlevered beta | 0.1 | 0.31 |
| Relevered beta | 0.1 | 0.31 |
| Adjusted relevered beta | 0.4 | 0.54 |
BLH.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 BLH.SI:
cost_of_equity (5.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.4) + 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.