DRX.SI WACC - Weighted Average Cost of Capital
The WACC of ST Group Food Industries Holdings Ltd (DRX.SI) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.2% | 6.8% |
| Tax rate | 33.8% - 35.5% | 34.65% |
| Cost of debt | 4.8% - 5.9% | 5.35% |
| WACC | 4.5% - 6.6% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.52 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.2% |
| Tax rate | 33.8% | 35.5% |
| Debt/Equity ratio | 0.6 | 0.6 |
| Cost of debt | 4.8% | 5.9% |
| After-tax WACC | 4.5% | 6.6% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DRX.SI | ST Group Food Industries Holdings Ltd | 0.6 | -0.31 | -0.22 |
| 1A0.SI | Katrina Group Ltd | 3.01 | -0.64 | -0.21 |
| 3224.T | General Oyster Inc | 0.13 | 0.79 | 0.73 |
| 3372.T | Kanmonkai Co Ltd | 0.92 | 0.35 | 0.22 |
| 8447.HK | MS Concept Ltd | 2.19 | 0.46 | 0.19 |
| 8495.HK | 1957 & Co (Hospitality) Ltd | 2.68 | 0.41 | 0.15 |
| 8519.HK | Jia Group Holdings Ltd | 0.14 | 0.63 | 0.57 |
| 8940.TW | New Palace International Co Ltd | 0.61 | 0.71 | 0.51 |
| CKF.AX | Collins Foods Ltd | 0.86 | 0.62 | 0.4 |
| DMP.AX | Domino's Pizza Enterprises Ltd | 0.61 | 1 | 0.72 |
| Low | High | |
| Unlevered beta | 0.21 | 0.44 |
| Relevered beta | 0.28 | 0.61 |
| Adjusted relevered beta | 0.52 | 0.74 |
DRX.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 DRX.SI:
cost_of_equity (6.80%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.