BVQ.SI WACC - Weighted Average Cost of Capital

The WACC of Procurri Corporation Ltd (BVQ.SI) is 6.4%.

The Cost of Equity of Procurri Corporation Ltd (BVQ.SI) is 5.85%.

The Cost of Debt of Procurri Corporation Ltd (BVQ.SI) is 10.15%.

	Range	Selected
Cost of equity	4.90% - 6.80%	5.85%
Tax rate	17.00% - 17.00%	17.00%
Cost of debt	5.80% - 14.50%	10.15%
WACC	4.8% - 8.0%	6.4%

WACC

BVQ.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.42	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	6.80%

Tax rate	17.00%	17.00%
Debt/Equity ratio	0.3	0.3
Cost of debt	5.80%	14.50%

After-tax WACC	4.8%	8.0%


Selected WACC	6.4%

BVQ.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 BVQ.SI:

cost_of_equity (5.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.