E5H.SI WACC - Weighted Average Cost of Capital

The WACC of Golden Agri-Resources Ltd (E5H.SI) is 6.2%.

The Cost of Equity of Golden Agri-Resources Ltd (E5H.SI) is 9.85%.

The Cost of Debt of Golden Agri-Resources Ltd (E5H.SI) is 5.90%.

	Range	Selected
Cost of equity	7.20% - 12.50%	9.85%
Tax rate	29.80% - 36.40%	33.10%
Cost of debt	5.90% - 5.90%	5.90%
WACC	5.3% - 7.1%	6.2%

WACC

E5H.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.88	1.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	12.50%

Tax rate	29.80%	36.40%
Debt/Equity ratio	1.62	1.62
Cost of debt	5.90%	5.90%

After-tax WACC	5.3%	7.1%


Selected WACC	6.2%

E5H.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 E5H.SI:

cost_of_equity (9.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.88) + 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.