I49.SI WACC - Weighted Average Cost of Capital

The WACC of IFS Capital Ltd (I49.SI) is 8.4%.

The Cost of Equity of IFS Capital Ltd (I49.SI) is 6.45%.

The Cost of Debt of IFS Capital Ltd (I49.SI) is 11.85%.

	Range	Selected
Cost of equity	4.90% - 8.00%	6.45%
Tax rate	24.20% - 24.80%	24.50%
Cost of debt	4.00% - 19.70%	11.85%
WACC	3.4% - 13.3%	8.4%

WACC

I49.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.43	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	8.00%

Tax rate	24.20%	24.80%
Debt/Equity ratio	3.52	3.52
Cost of debt	4.00%	19.70%

After-tax WACC	3.4%	13.3%


Selected WACC	8.4%

I49.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 I49.SI:

cost_of_equity (6.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.