F83.SI WACC - Weighted Average Cost of Capital
The WACC of Cosco Shipping International (Singapore) Co Ltd (F83.SI) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.1% - 11.3% | 9.2% |
| Tax rate | 18.5% - 26.2% | 22.35% |
| Cost of debt | 4.0% - 11.2% | 7.6% |
| WACC | 5.9% - 10.3% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.86 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 11.3% |
| Tax rate | 18.5% | 26.2% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.0% | 11.2% |
| After-tax WACC | 5.9% | 10.3% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| F83.SI | Cosco Shipping International (Singapore) Co Ltd | 0.46 | 0.73 | 0.54 |
| 300013.SZ | Jiangsu Xinning Modern Logistics Co Ltd | 0.04 | 1.02 | 0.98 |
| 595.SI | Gke Corporation Ltd | 0.84 | 0.86 | 0.52 |
| 603117.SS | Jiangsu Wanlin Modern Logistics Co Ltd | 0.04 | 1.37 | 1.33 |
| BIP.SI | Vibrant Group Ltd | 1.91 | 0.8 | 0.32 |
| BTJ.SI | A-Sonic Aerospace Ltd | 0.07 | -0.28 | -0.27 |
| GDEX.KL | Gdex Bhd | 0.13 | 1.14 | 1.03 |
| JWD.BK | JWD InfoLogistics PCL | 0.51 | 1.59 | 1.14 |
| S08.SI | Singapore Post Ltd | 0.69 | 0.95 | 0.62 |
| TCIEXP.NS | TCI Express Ltd | 0 | 1.11 | 1.11 |
| Low | High | |
| Unlevered beta | 0.59 | 1 |
| Relevered beta | 0.79 | 1.36 |
| Adjusted relevered beta | 0.86 | 1.24 |
F83.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 F83.SI:
cost_of_equity (9.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.86) + 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.