G50.SI WACC - Weighted Average Cost of Capital

The WACC of Grand Banks Yachts Ltd (G50.SI) is 7.4%.

The Cost of Equity of Grand Banks Yachts Ltd (G50.SI) is 8.40%.

The Cost of Debt of Grand Banks Yachts Ltd (G50.SI) is 4.50%.

	Range	Selected
Cost of equity	5.80% - 11.00%	8.40%
Tax rate	27.80% - 29.60%	28.70%
Cost of debt	4.00% - 5.00%	4.50%
WACC	5.3% - 9.6%	7.4%

WACC

G50.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.61	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	11.00%

Tax rate	27.80%	29.60%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.00%	5.00%

After-tax WACC	5.3%	9.6%


Selected WACC	7.4%

G50.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 G50.SI:

cost_of_equity (8.40%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.61) + 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.