CY6U.SI WACC - Weighted Average Cost of Capital

The WACC of Ascendas India Trust (CY6U.SI) is 6.5%.

The Cost of Equity of Ascendas India Trust (CY6U.SI) is 8.50%.

The Cost of Debt of Ascendas India Trust (CY6U.SI) is 7.05%.

	Range	Selected
Cost of equity	7.10% - 9.90%	8.50%
Tax rate	25.80% - 29.20%	27.50%
Cost of debt	6.10% - 8.00%	7.05%
WACC	5.6% - 7.4%	6.5%

WACC

CY6U.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.86	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.90%

Tax rate	25.80%	29.20%
Debt/Equity ratio	1.35	1.35
Cost of debt	6.10%	8.00%

After-tax WACC	5.6%	7.4%


Selected WACC	6.5%

CY6U.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 CY6U.SI:

cost_of_equity (8.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.86) + 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.