CHJ.SI
Uni-Asia Group Ltd
Price:  
0.8 
SGD
Volume:  
58,900
Hong Kong | Capital Markets

CHJ.SI WACC - Weighted Average Cost of Capital

The WACC of Uni-Asia Group Ltd (CHJ.SI) is 5.4%.

The Cost of Equity of Uni-Asia Group Ltd (CHJ.SI) is 5.4%.
The Cost of Debt of Uni-Asia Group Ltd (CHJ.SI) is 5.65%.

RangeSelected
Cost of equity4.6% - 6.2%5.4%
Tax rate4.4% - 7.1%5.75%
Cost of debt4.3% - 7.0%5.65%
WACC4.4% - 6.4%5.4%
WACC

CHJ.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.370.42
Additional risk adjustments0.0%0.5%
Cost of equity4.6%6.2%
Tax rate4.4%7.1%
Debt/Equity ratio
0.910.91
Cost of debt4.3%7.0%
After-tax WACC4.4%6.4%
Selected WACC5.4%

CHJ.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 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.