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 29.50%.

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

	Range	Selected
Cost of equity	18.40% - 40.60%	29.50%
Tax rate	25.90% - 31.90%	28.90%
Cost of debt	7.00% - 22.70%	14.85%
WACC	5.8% - 16.5%	11.1%

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	3.07	6.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.40%	40.60%

Tax rate	25.90%	31.90%
Debt/Equity ratio	22.78	22.78
Cost of debt	7.00%	22.70%

After-tax WACC	5.8%	16.5%


Selected WACC	11.1%

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.