E3B.SI WACC - Weighted Average Cost of Capital
The WACC of Wee Hur Holdings Ltd (E3B.SI) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.3% | 7.05% |
| Tax rate | 11.7% - 13.0% | 12.35% |
| Cost of debt | 4.0% - 5.2% | 4.6% |
| WACC | 5.1% - 7.1% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.6 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.3% |
| Tax rate | 11.7% | 13.0% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.0% | 5.2% |
| After-tax WACC | 5.1% | 7.1% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| E3B.SI | Wee Hur Holdings Ltd | 0.46 | 1.28 | 0.91 |
| 2227.HK | Solis Holdings Ltd | 0.32 | -0.06 | -0.05 |
| 41B.SI | Huationg Global Ltd | 1.23 | 1.19 | 0.57 |
| 5HV.SI | Koh Brothers Eco Engineering Ltd | 0.3 | 1.32 | 1.04 |
| 8373.HK | Indigo Star Holdings Ltd | 0.68 | 0.81 | 0.5 |
| ER0.SI | KSH Holdings Ltd | 0.45 | 0.51 | 0.36 |
| K75.SI | Koh Brothers Group Ltd | 1.28 | 0.89 | 0.42 |
| KJ5.SI | BBR Holdings (S) Ltd | 1.83 | 0.46 | 0.18 |
| PA3.SI | TA Corporation Ltd | 3.37 | -1.46 | -0.37 |
| S7P.SI | Soilbuild Construction Group Ltd | 0.73 | -0.86 | -0.52 |
| Low | High | |
| Unlevered beta | 0.29 | 0.45 |
| Relevered beta | 0.4 | 0.64 |
| Adjusted relevered beta | 0.6 | 0.76 |
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 (7.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.