BTJ.SI WACC - Weighted Average Cost of Capital
The WACC of A-Sonic Aerospace Ltd (BTJ.SI) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.0% | 7.5% |
| Tax rate | 11.8% - 13.4% | 12.6% |
| Cost of debt | 4.0% - 4.8% | 4.4% |
| WACC | 5.9% - 8.7% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.65 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.0% |
| Tax rate | 11.8% | 13.4% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.8% |
| After-tax WACC | 5.9% | 8.7% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BTJ.SI | A-Sonic Aerospace Ltd | 0.07 | -0.25 | -0.23 |
| 009070.KS | KCTC | 2.92 | -0.48 | -0.14 |
| 595.SI | Gke Corporation Ltd | 0.93 | 0.82 | 0.45 |
| BIP.SI | Vibrant Group Ltd | 3.13 | 0.6 | 0.16 |
| F83.SI | Cosco Shipping International (Singapore) Co Ltd | 0.89 | 0.78 | 0.44 |
| GATI.NS | Gati Ltd | 0.19 | 1.4 | 1.2 |
| MAHLOG.NS | Mahindra Logistics Ltd | 0.3 | 1.67 | 1.32 |
| S08.SI | Singapore Post Ltd | 0.75 | 0.89 | 0.54 |
| TCI.NS | Transport Corporation of India Ltd | 0.02 | 1.29 | 1.27 |
| WICE.BK | WICE Logistics PCL | 0.16 | 1.24 | 1.09 |
| Low | High | |
| Unlevered beta | 0.45 | 0.76 |
| Relevered beta | 0.48 | 0.81 |
| Adjusted relevered beta | 0.65 | 0.87 |
BTJ.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 BTJ.SI:
cost_of_equity (7.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.65) + 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.