MIJ.SI
Alliance Healthcare Group Ltd
Price:  
0.1 
SGD
Volume:  
36,400
Singapore | Health Care Providers & Services

MIJ.SI WACC - Weighted Average Cost of Capital

The WACC of Alliance Healthcare Group Ltd (MIJ.SI) is 9.1%.

The Cost of Equity of Alliance Healthcare Group Ltd (MIJ.SI) is 6.2%.
The Cost of Debt of Alliance Healthcare Group Ltd (MIJ.SI) is 14.15%.

RangeSelected
Cost of equity5.4% - 7.0%6.2%
Tax rate13.3% - 13.8%13.55%
Cost of debt7.0% - 21.3%14.15%
WACC5.7% - 12.6%9.1%
WACC

MIJ.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.340.37
Additional risk adjustments1.0%1.5%
Cost of equity5.4%7.0%
Tax rate13.3%13.8%
Debt/Equity ratio
0.950.95
Cost of debt7.0%21.3%
After-tax WACC5.7%12.6%
Selected WACC9.1%

MIJ.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 MIJ.SI:

cost_of_equity (6.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.