E3B.SI WACC - Weighted Average Cost of Capital

The WACC of Wee Hur Holdings Ltd (E3B.SI) is 6.6%.

The Cost of Equity of Wee Hur Holdings Ltd (E3B.SI) is 8.10%.

The Cost of Debt of Wee Hur Holdings Ltd (E3B.SI) is 4.60%.

	Range	Selected
Cost of equity	6.90% - 9.30%	8.10%
Tax rate	11.70% - 13.00%	12.35%
Cost of debt	4.00% - 5.20%	4.60%
WACC	5.7% - 7.5%	6.6%

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	0.82	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.30%

Tax rate	11.70%	13.00%
Debt/Equity ratio	0.57	0.57
Cost of debt	4.00%	5.20%

After-tax WACC	5.7%	7.5%


Selected WACC	6.6%

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 (8.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.82) + 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.