BXE.SI WACC - Weighted Average Cost of Capital

The WACC of CDW Holding Ltd (BXE.SI) is 7.9%.

The Cost of Equity of CDW Holding Ltd (BXE.SI) is 9.50%.

The Cost of Debt of CDW Holding Ltd (BXE.SI) is 5.50%.

	Range	Selected
Cost of equity	7.00% - 12.00%	9.50%
Tax rate	29.60% - 41.80%	35.70%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.9% - 9.9%	7.9%

WACC

BXE.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.85	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	12.00%

Tax rate	29.60%	41.80%
Debt/Equity ratio	0.34	0.34
Cost of debt	4.00%	7.00%

After-tax WACC	5.9%	9.9%


Selected WACC	7.9%

BXE.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 BXE.SI:

cost_of_equity (9.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.