BQF.SI WACC - Weighted Average Cost of Capital

The WACC of XMH Holdings Ltd (BQF.SI) is 6.4%.

The Cost of Equity of XMH Holdings Ltd (BQF.SI) is 7.50%.

The Cost of Debt of XMH Holdings Ltd (BQF.SI) is 4.25%.

	Range	Selected
Cost of equity	6.50% - 8.50%	7.50%
Tax rate	28.80% - 32.20%	30.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.6% - 7.2%	6.4%

WACC

BQF.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.75	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	8.50%

Tax rate	28.80%	32.20%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.00%	4.50%

After-tax WACC	5.6%	7.2%


Selected WACC	6.4%

BQF.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 BQF.SI:

cost_of_equity (7.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.