F31.SI WACC - Weighted Average Cost of Capital
The WACC of Fragrance Group Ltd (F31.SI) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.3% | 6.2% |
| Tax rate | 9.7% - 12.9% | 11.3% |
| Cost of debt | 4.0% - 12.9% | 8.45% |
| WACC | 4.1% - 10.0% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.46 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.3% |
| Tax rate | 9.7% | 12.9% |
| Debt/Equity ratio | 2.1 | 2.1 |
| Cost of debt | 4.0% | 12.9% |
| After-tax WACC | 4.1% | 10.0% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| F31.SI | Fragrance Group Ltd | 2.1 | 0.25 | 0.09 |
| 1E6.SI | World Class Global Ltd | 4.72 | 0.13 | 0.03 |
| 1F3.SI | Aspen (Group) Holdings Ltd | 2.74 | 0.56 | 0.16 |
| 5JK.SI | Hiap Hoe Ltd | 3.11 | -0.06 | -0.02 |
| AZA.SI | IPC Corporation Ltd | 0.57 | 0.9 | 0.6 |
| BDX.SI | GSH Corporation Ltd | 1.55 | 0.21 | 0.09 |
| H30.SI | Hong Fok Corporation Ltd | 0.98 | 0.9 | 0.48 |
| O10.SI | Far East Orchard Ltd | 1.59 | 0.16 | 0.07 |
| RISE.JK | Jaya Sukses Makmur Sentosa Tbk PT | 0.05 | -0.05 | -0.04 |
| S9B.SI | Amcorp Global Ltd | 0.41 | -0.01 | -0.01 |
| Low | High | |
| Unlevered beta | 0.05 | 0.09 |
| Relevered beta | 0.19 | 0.39 |
| Adjusted relevered beta | 0.46 | 0.59 |
F31.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 F31.SI:
cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (5.20%) * adjusted_beta (0.46) + 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.