I07.SI WACC - Weighted Average Cost of Capital

The WACC of ISDN Holdings Ltd (I07.SI) is 8.0%.

The Cost of Equity of ISDN Holdings Ltd (I07.SI) is 10.10%.

The Cost of Debt of ISDN Holdings Ltd (I07.SI) is 5.75%.

	Range	Selected
Cost of equity	7.80% - 12.40%	10.10%
Tax rate	28.50% - 29.20%	28.85%
Cost of debt	4.20% - 7.30%	5.75%
WACC	6.1% - 9.9%	8.0%

WACC

I07.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.99	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	12.40%

Tax rate	28.50%	29.20%
Debt/Equity ratio	0.54	0.54
Cost of debt	4.20%	7.30%

After-tax WACC	6.1%	9.9%


Selected WACC	8.0%

I07.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 I07.SI:

cost_of_equity (10.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.99) + 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.