C9Q.SI
Sinostar Pec Holdings Ltd
Price:  
0.15 
SGD
Volume:  
5,000.00
China | Oil, Gas & Consumable Fuels
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C9Q.SI WACC - Weighted Average Cost of Capital

The WACC of Sinostar Pec Holdings Ltd (C9Q.SI) is 6.3%.

The Cost of Equity of Sinostar Pec Holdings Ltd (C9Q.SI) is 7.70%.
The Cost of Debt of Sinostar Pec Holdings Ltd (C9Q.SI) is 4.25%.

Range Selected
Cost of equity 5.10% - 10.30% 7.70%
Tax rate 25.60% - 26.20% 25.90%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.5% - 8.2% 6.3%
WACC

C9Q.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.47 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 10.30%
Tax rate 25.60% 26.20%
Debt/Equity ratio 0.43 0.43
Cost of debt 4.00% 4.50%
After-tax WACC 4.5% 8.2%
Selected WACC 6.3%

C9Q.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 C9Q.SI:

cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.