I11.SI WACC - Weighted Average Cost of Capital
The WACC of Renaissance United Ltd (I11.SI) is 6.0%.
| Range | Selected | |
| Cost of equity | 8.4% - 19.6% | 14% |
| Tax rate | 12.8% - 17.0% | 14.9% |
| Cost of debt | 4.0% - 5.5% | 4.75% |
| WACC | 4.4% - 7.5% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.11 | 2.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 19.6% |
| Tax rate | 12.8% | 17.0% |
| Debt/Equity ratio | 4.18 | 4.18 |
| Cost of debt | 4.0% | 5.5% |
| After-tax WACC | 4.4% | 7.5% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| I11.SI | Renaissance United Ltd | 4.18 | 0 | 0 |
| 000593.SZ | Sichuan Datong Gas Development Co Ltd | 0.26 | 0.9 | 0.73 |
| 1F2.SI | Union Gas Holdings Ltd | 0.32 | 0.37 | 0.29 |
| 603053.SS | Chengdu Gas Group Co Ltd | 0.01 | 0.74 | 0.74 |
| 603080.SS | Xinjiang Torch Gas Co Ltd | 0.01 | 0.85 | 0.84 |
| 7UP.BK | Seven Utilities and Power PCL | 0.33 | 1.71 | 1.33 |
| 9931.TW | Hsin Kao Gas Co Ltd | 0.06 | 0.17 | 0.16 |
| MGL.NS | Mahanagar Gas Ltd | 0.01 | 1.26 | 1.25 |
| RTGZ.ME | Gazprom Gazoraspredeleniye Rostov-Na-Donu PAO | 0.6 | 0.1 | 0.07 |
| SCN.BK | Scan Inter PCL | 2.51 | 1.08 | 0.34 |
| Low | High | |
| Unlevered beta | 0.32 | 0.73 |
| Relevered beta | 1.16 | 3.4 |
| Adjusted relevered beta | 1.11 | 2.61 |
I11.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 I11.SI:
cost_of_equity (14.00%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.11) + 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.