F9D.SI WACC - Weighted Average Cost of Capital

The WACC of Boustead Singapore Ltd (F9D.SI) is 6.8%.

The Cost of Equity of Boustead Singapore Ltd (F9D.SI) is 6.95%.

The Cost of Debt of Boustead Singapore Ltd (F9D.SI) is 4.30%.

	Range	Selected
Cost of equity	4.90% - 9.00%	6.95%
Tax rate	23.50% - 27.20%	25.35%
Cost of debt	4.00% - 4.60%	4.30%
WACC	4.9% - 8.8%	6.8%

WACC

F9D.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.44	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	9.00%

Tax rate	23.50%	27.20%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	4.60%

After-tax WACC	4.9%	8.8%


Selected WACC	6.8%

F9D.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 F9D.SI:

cost_of_equity (6.95%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + 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.