FQ7.SI WACC - Weighted Average Cost of Capital
The WACC of Jasper Investments Ltd (FQ7.SI) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.8% | 6.7% |
| Tax rate | 17.0% - 17.0% | 17% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.57 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.8% |
| Tax rate | 17.0% | 17.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FQ7.SI | Jasper Investments Ltd | 0 | -0.98 | -0.98 |
| 5G2.SI | Kim Heng Offshore & Marine Holdings Ltd | 1.22 | 0.38 | 0.19 |
| 5WH.SI | Rex International Holding Ltd | 0.82 | 1.17 | 0.69 |
| BLZ.SI | Advanced Holdings Ltd | 1.02 | 1.97 | 1.07 |
| BTP.SI | Baker Technology Ltd | 0.13 | 0.46 | 0.42 |
| C13.SI | CH Offshore Ltd | 0.2 | 0.24 | 0.2 |
| DEEPENR.NS | Deep Energy Resources Ltd | 0.03 | 0.48 | 0.46 |
| DU4.SI | Mermaid Maritime PCL | 0.93 | 0.96 | 0.55 |
| M05.SI | MTQ Corporation Ltd | 0.54 | 0.42 | 0.29 |
| OILCOUNTUB.NS | Oil Country Tubular Ltd | 0.09 | 1.45 | 1.34 |
| Low | High | |
| Unlevered beta | 0.36 | 0.5 |
| Relevered beta | 0.36 | 0.49 |
| Adjusted relevered beta | 0.57 | 0.66 |
FQ7.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 FQ7.SI:
cost_of_equity (6.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.57) + 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.