E9L.SI WACC - Weighted Average Cost of Capital

The WACC of Joyas International Holdings Ltd (E9L.SI) is 8.7%.

The Cost of Equity of Joyas International Holdings Ltd (E9L.SI) is 6.80%.

The Cost of Debt of Joyas International Holdings Ltd (E9L.SI) is 11.85%.

	Range	Selected
Cost of equity	5.20% - 8.40%	6.80%
Tax rate	11.20% - 11.80%	11.50%
Cost of debt	4.00% - 19.70%	11.85%
WACC	4.3% - 13.1%	8.7%

WACC

E9L.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.49	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	8.40%

Tax rate	11.20%	11.80%
Debt/Equity ratio	1.11	1.11
Cost of debt	4.00%	19.70%

After-tax WACC	4.3%	13.1%


Selected WACC	8.7%

E9L.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 E9L.SI:

cost_of_equity (6.80%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.