G50.SI WACC - Weighted Average Cost of Capital

The WACC of Grand Banks Yachts Ltd (G50.SI) is 8.5%.

The Cost of Equity of Grand Banks Yachts Ltd (G50.SI) is 8.90%.

The Cost of Debt of Grand Banks Yachts Ltd (G50.SI) is 4.25%.

	Range	Selected
Cost of equity	7.30% - 10.50%	8.90%
Tax rate	26.10% - 28.60%	27.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.0% - 10.0%	8.5%

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	0.91	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	10.50%

Tax rate	26.10%	28.60%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	4.50%

After-tax WACC	7.0%	10.0%


Selected WACC	8.5%

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 (8.90%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.91) + 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.