E3B.SI WACC - Weighted Average Cost of Capital

The WACC of Wee Hur Holdings Ltd (E3B.SI) is 8.1%.

The Cost of Equity of Wee Hur Holdings Ltd (E3B.SI) is 9.90%.

The Cost of Debt of Wee Hur Holdings Ltd (E3B.SI) is 4.30%.

	Range	Selected
Cost of equity	8.30% - 11.50%	9.90%
Tax rate	8.70% - 11.50%	10.10%
Cost of debt	4.00% - 4.60%	4.30%
WACC	6.9% - 9.3%	8.1%

WACC

E3B.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.09	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.50%

Tax rate	8.70%	11.50%
Debt/Equity ratio	0.41	0.41
Cost of debt	4.00%	4.60%

After-tax WACC	6.9%	9.3%


Selected WACC	8.1%

E3B.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 E3B.SI:

cost_of_equity (9.90%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.09) + 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.