BWM.SI WACC - Weighted Average Cost of Capital

The WACC of Zheneng Jinjiang Environment Holding Co Ltd (BWM.SI) is 6.4%.

The Cost of Equity of Zheneng Jinjiang Environment Holding Co Ltd (BWM.SI) is 15.75%.

The Cost of Debt of Zheneng Jinjiang Environment Holding Co Ltd (BWM.SI) is 5.20%.

	Range	Selected
Cost of equity	13.40% - 18.10%	15.75%
Tax rate	27.50% - 29.80%	28.65%
Cost of debt	4.50% - 5.90%	5.20%
WACC	5.5% - 7.2%	6.4%

WACC

BWM.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.1	2.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	18.10%

Tax rate	27.50%	29.80%
Debt/Equity ratio	3.46	3.46
Cost of debt	4.50%	5.90%

After-tax WACC	5.5%	7.2%


Selected WACC	6.4%

BWM.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 BWM.SI:

cost_of_equity (15.75%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (2.1) + 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.