D03.SI
Del Monte Pacific Ltd
Price:  
0.07 
SGD
Volume:  
68,200
Singapore | Food Products

D03.SI WACC - Weighted Average Cost of Capital

The WACC of Del Monte Pacific Ltd (D03.SI) is 11.1%.

The Cost of Equity of Del Monte Pacific Ltd (D03.SI) is 29.5%.
The Cost of Debt of Del Monte Pacific Ltd (D03.SI) is 14.85%.

RangeSelected
Cost of equity18.4% - 40.6%29.5%
Tax rate25.9% - 31.9%28.9%
Cost of debt7.0% - 22.7%14.85%
WACC5.8% - 16.5%11.1%
WACC

D03.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta3.076.05
Additional risk adjustments0.0%0.5%
Cost of equity18.4%40.6%
Tax rate25.9%31.9%
Debt/Equity ratio
22.7822.78
Cost of debt7.0%22.7%
After-tax WACC5.8%16.5%
Selected WACC11.1%

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 (29.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (3.07) + 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.