F17.SI
GuocoLand Ltd
Price:  
1.65 
SGD
Volume:  
298,800.00
Singapore | Real Estate Management & Development
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F17.SI WACC - Weighted Average Cost of Capital

The WACC of GuocoLand Ltd (F17.SI) is 6.1%.

The Cost of Equity of GuocoLand Ltd (F17.SI) is 6.95%.
The Cost of Debt of GuocoLand Ltd (F17.SI) is 7.60%.

Range Selected
Cost of equity 5.80% - 8.10% 6.95%
Tax rate 16.70% - 27.40% 22.05%
Cost of debt 4.00% - 11.20% 7.60%
WACC 4.0% - 8.1% 6.1%
WACC

F17.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.61 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.10%
Tax rate 16.70% 27.40%
Debt/Equity ratio 2.7 2.7
Cost of debt 4.00% 11.20%
After-tax WACC 4.0% 8.1%
Selected WACC 6.1%

F17.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 F17.SI:

cost_of_equity (6.95%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.61) + 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.