The WACC of Boustead Singapore Ltd (F9D.SI) is 6.9%.
Range | Selected | |
Cost of equity | 5.7% - 8.4% | 7.05% |
Tax rate | 23.5% - 27.2% | 25.35% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.6% - 8.2% | 6.9% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.59 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.7% | 8.4% |
Tax rate | 23.5% | 27.2% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.6% | 8.2% |
Selected WACC | 6.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
F9D.SI | Boustead Singapore Ltd | 0.05 | 0.51 | 0.5 |
002811.SZ | Shenzhen Cheng Chung Design Co Ltd | 0.17 | 0.97 | 0.86 |
1416.HK | CTR Holdings Ltd | 0.01 | 0.25 | 0.24 |
1420.HK | Chuan Holdings Ltd | 1.54 | -0.14 | -0.07 |
5G9.SI | Tritech Group Ltd | 0.69 | 1.74 | 1.15 |
924.HK | Khoon Group Ltd | 0.01 | 0.47 | 0.46 |
ASHOKA.NS | Ashoka Buildcon Ltd | 0.94 | 1.53 | 0.9 |
AXB.SI | Yongnam Holdings Ltd | 7.88 | 1.03 | 0.15 |
C06.SI | CSC Holdings Ltd | 3.23 | -0.2 | -0.06 |
ENGINERSIN.NS | Engineers India Ltd | 0 | 1.55 | 1.55 |
Low | High | |
Unlevered beta | 0.38 | 0.64 |
Relevered beta | 0.39 | 0.67 |
Adjusted relevered beta | 0.59 | 0.78 |
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 F9D.SI:
cost_of_equity (7.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.