CC3.SI
StarHub Ltd
Price:  
1.17 
SGD
Volume:  
986,100.00
Singapore | Wireless Telecommunication Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CC3.SI WACC - Weighted Average Cost of Capital

The WACC of StarHub Ltd (CC3.SI) is 6.4%.

The Cost of Equity of StarHub Ltd (CC3.SI) is 8.30%.
The Cost of Debt of StarHub Ltd (CC3.SI) is 4.25%.

Range Selected
Cost of equity 5.50% - 11.10% 8.30%
Tax rate 19.90% - 22.70% 21.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.6% - 8.1% 6.4%
WACC

CC3.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.55 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 11.10%
Tax rate 19.90% 22.70%
Debt/Equity ratio 0.63 0.63
Cost of debt 4.00% 4.50%
After-tax WACC 4.6% 8.1%
Selected WACC 6.4%

CC3.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 CC3.SI:

cost_of_equity (8.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.