J85.SI WACC - Weighted Average Cost of Capital

The WACC of CDL Hospitality Trusts (J85.SI) is 7.1%.

The Cost of Equity of CDL Hospitality Trusts (J85.SI) is 7.20%.

The Cost of Debt of CDL Hospitality Trusts (J85.SI) is 7.60%.

	Range	Selected
Cost of equity	5.90% - 8.50%	7.20%
Tax rate	4.60% - 8.20%	6.40%
Cost of debt	4.00% - 11.20%	7.60%
WACC	4.7% - 9.6%	7.1%

WACC

J85.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.62	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	8.50%

Tax rate	4.60%	8.20%
Debt/Equity ratio	1.42	1.42
Cost of debt	4.00%	11.20%

After-tax WACC	4.7%	9.6%


Selected WACC	7.1%

J85.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 J85.SI:

cost_of_equity (7.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.