C09.SI WACC - Weighted Average Cost of Capital

The WACC of City Developments Ltd (C09.SI) is 6.8%.

The Cost of Equity of City Developments Ltd (C09.SI) is 8.05%.

The Cost of Debt of City Developments Ltd (C09.SI) is 9.25%.

	Range	Selected
Cost of equity	6.30% - 9.80%	8.05%
Tax rate	28.00% - 33.90%	30.95%
Cost of debt	4.00% - 14.50%	9.25%
WACC	4.0% - 9.6%	6.8%

WACC

C09.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.71	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	9.80%

Tax rate	28.00%	33.90%
Debt/Equity ratio	2.17	2.17
Cost of debt	4.00%	14.50%

After-tax WACC	4.0%	9.6%


Selected WACC	6.8%

C09.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 C09.SI:

cost_of_equity (8.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.