D03.SI WACC - Weighted Average Cost of Capital

The WACC of Del Monte Pacific Ltd (D03.SI) is 10.7%.

The Cost of Equity of Del Monte Pacific Ltd (D03.SI) is 21.95%.

The Cost of Debt of Del Monte Pacific Ltd (D03.SI) is 11.30%.

	Range	Selected
Cost of equity	17.30% - 26.60%	21.95%
Tax rate	17.00% - 17.00%	17.00%
Cost of debt	8.10% - 14.50%	11.30%
WACC	7.9% - 13.6%	10.7%

WACC

D03.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.86	3.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.30%	26.60%

Tax rate	17.00%	17.00%
Debt/Equity ratio	8.39	8.39
Cost of debt	8.10%	14.50%

After-tax WACC	7.9%	13.6%


Selected WACC	10.7%

D03.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 D03.SI:

cost_of_equity (21.95%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (2.86) + 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.