The WACC of Uni-Asia Group Ltd (CHJ.SI) is 5.4%.
Range | Selected | |
Cost of equity | 4.6% - 6.2% | 5.4% |
Tax rate | 4.4% - 7.1% | 5.75% |
Cost of debt | 4.3% - 7.0% | 5.65% |
WACC | 4.4% - 6.4% | 5.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.37 | 0.42 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.6% | 6.2% |
Tax rate | 4.4% | 7.1% |
Debt/Equity ratio | 0.91 | 0.91 |
Cost of debt | 4.3% | 7.0% |
After-tax WACC | 4.4% | 6.4% |
Selected WACC | 5.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CHJ.SI | Uni-Asia Group Ltd | 0.91 | 0.2 | 0.11 |
174.HK | Gemini Investments Holdings Ltd | 31.85 | 0.65 | 0.02 |
428.HK | Cocoon Holdings Ltd | 0.91 | 0.07 | 0.04 |
8149.HK | Altus Holdings Ltd | 1.69 | -0.07 | -0.03 |
8193.HK | Asia Pac Financial Investment Company Ltd | 1.04 | 0.03 | 0.01 |
8439.HK | Somerley Capital Holdings Ltd | 0.06 | 0.18 | 0.17 |
8657.HK | True Partner Capital Holding Ltd | 0 | 0.26 | 0.26 |
901.HK | Goldstone Investment Group Ltd | 3.43 | -0.25 | -0.06 |
EDC.AX | Eildon Capital Ltd | 0 | 0.04 | 0.04 |
IDJ.VN | IDJ Vietnam Investment JSC | 0.23 | 2.05 | 1.68 |
Low | High | |
Unlevered beta | 0.03 | 0.07 |
Relevered beta | 0.06 | 0.13 |
Adjusted relevered beta | 0.37 | 0.42 |
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 CHJ.SI:
cost_of_equity (5.40%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.