F10.SI WACC - Weighted Average Cost of Capital

The WACC of F J Benjamin Holdings Ltd (F10.SI) is 7.4%.

The Cost of Equity of F J Benjamin Holdings Ltd (F10.SI) is 13.05%.

The Cost of Debt of F J Benjamin Holdings Ltd (F10.SI) is 5.50%.

	Range	Selected
Cost of equity	8.30% - 17.80%	13.05%
Tax rate	6.40% - 14.50%	10.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.1% - 9.6%	7.4%

WACC

F10.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.1	2.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	17.80%

Tax rate	6.40%	14.50%
Debt/Equity ratio	2.28	2.28
Cost of debt	4.00%	7.00%

After-tax WACC	5.1%	9.6%


Selected WACC	7.4%

F10.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 F10.SI:

cost_of_equity (13.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.1) + 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.