BSL.SI WACC - Weighted Average Cost of Capital
The WACC of Raffles Medical Group Ltd (BSL.SI) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.4% | 7.15% |
| Tax rate | 24.5% - 26.1% | 25.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.9% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.63 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.4% |
| Tax rate | 24.5% | 26.1% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.9% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BSL.SI | Raffles Medical Group Ltd | 0.1 | 0.36 | 0.33 |
| 1515.HK | China Resources Medical Holdings Company Ltd | 0.51 | 1.16 | 0.84 |
| 1D8.SI | Singapore O&G Ltd | 0.02 | 1.06 | 1.04 |
| 4004.SR | Dallah Healthcare Company SJSC | 0.17 | 0.83 | 0.74 |
| 40T.SI | ISEC Healthcare Ltd | 0.08 | -0.02 | -0.02 |
| A50.SI | Thomson Medical Group Ltd | 0.99 | 0.43 | 0.25 |
| BCH.BK | Bangkok Chain Hospital PCL | 0.03 | 0.84 | 0.82 |
| KPJ.KL | KPJ Healthcare Bhd | 0.28 | 0.57 | 0.47 |
| NH.NS | Narayana Hrudayalaya Ltd | 0.05 | 0.52 | 0.51 |
| SVH.BK | Samitivej PCL | 0.01 | 0.23 | 0.23 |
| Low | High | |
| Unlevered beta | 0.41 | 0.6 |
| Relevered beta | 0.45 | 0.64 |
| Adjusted relevered beta | 0.63 | 0.76 |
BSL.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 BSL.SI:
cost_of_equity (7.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.