The WACC of Frencken Group Ltd (E28.SI) is 5.6%.
Range | Selected | |
Cost of equity | 4.6% - 7.7% | 6.15% |
Tax rate | 17.7% - 19.0% | 18.35% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.3% - 6.9% | 5.6% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.36 | 0.66 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.6% | 7.7% |
Tax rate | 17.7% | 19.0% |
Debt/Equity ratio | 0.25 | 0.25 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.3% | 6.9% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
E28.SI | Frencken Group Ltd | 0.25 | 1.14 | 0.94 |
5QR.SI | MSM International Ltd | 2.02 | -0.79 | -0.3 |
CNASIA.KL | Cn Asia Corporation Bhd | 0.49 | 0.21 | 0.15 |
HIGHTEC.KL | Kumpulan H & L High-Tech Bhd | 0.24 | -0.32 | -0.27 |
JASKITA.KL | Jasa Kita Bhd | 0 | 1.51 | 1.51 |
POLYDM.KL | Polydamic Group Bhd | 0.08 | 0.28 | 0.26 |
SANICHI.KL | Sanichi Technology Bhd | 1.92 | -1.15 | -0.45 |
TECFAST.KL | Techfast Holdings Bhd | 0.01 | 1.87 | 1.86 |
WIDETEC.KL | Widetech (Malaysia) Bhd | 0.01 | -0.29 | -0.28 |
YBS.KL | YBS International Bhd | 0.72 | 1.01 | 0.64 |
Low | High | |
Unlevered beta | -0.02 | 0.41 |
Relevered beta | 0.04 | 0.49 |
Adjusted relevered beta | 0.36 | 0.66 |
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 E28.SI:
cost_of_equity (6.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.