BS6.SI WACC - Weighted Average Cost of Capital
The WACC of Yangzijiang Shipbuilding Holdings Ltd (BS6.SI) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.4% | 9.9% |
| Tax rate | 20.5% - 20.6% | 20.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.9% - 10.6% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.12 | 1.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.4% |
| Tax rate | 20.5% | 20.6% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.9% | 10.6% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BS6.SI | Yangzijiang Shipbuilding Holdings Ltd | 0.12 | 1.1 | 1.01 |
| 000868.SZ | Anhui Ankai Automobile Co Ltd | 0.2 | 1.28 | 1.11 |
| 002111.SZ | Weihai Guangtai Airport Equipment Co Ltd | 0.4 | 1.33 | 1.01 |
| 002526.SZ | Shandong Mining Machinery Group Co Ltd | 0.09 | 1.99 | 1.86 |
| 300201.SZ | Xuzhou Handler Special Vehicle Co Ltd | 0.09 | 1.77 | 1.66 |
| 300816.SZ | ActBlue Co Ltd | 0.29 | 1.61 | 1.31 |
| 600213.SS | Yangzhou Yaxing Motor Coach Co Ltd | 0.69 | 2.09 | 1.35 |
| 600501.SS | Aerosun Corp | 0.15 | 1.35 | 1.21 |
| 603012.SS | Shanghai Chuangli Group Co Ltd | 0.23 | 1.24 | 1.05 |
| 603111.SS | Nanjing Kangni Mechanical & Electrical Co Ltd | 0.12 | 0.98 | 0.89 |
| Low | High | |
| Unlevered beta | 1.08 | 1.25 |
| Relevered beta | 1.18 | 1.39 |
| Adjusted relevered beta | 1.12 | 1.26 |
BS6.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 BS6.SI:
cost_of_equity (9.90%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.12) + 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.