MIJ.SI WACC - Weighted Average Cost of Capital
The WACC of Alliance Healthcare Group Ltd (MIJ.SI) is 9.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.0% | 6.2% |
| Tax rate | 13.3% - 13.8% | 13.55% |
| Cost of debt | 7.0% - 21.3% | 14.15% |
| WACC | 5.7% - 12.6% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.34 | 0.37 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.4% | 7.0% |
| Tax rate | 13.3% | 13.8% |
| Debt/Equity ratio | 0.95 | 0.95 |
| Cost of debt | 7.0% | 21.3% |
| After-tax WACC | 5.7% | 12.6% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIJ.SI | Alliance Healthcare Group Ltd | 0.95 | 0.24 | 0.13 |
| 1419.HK | Human Health Holdings Ltd | 0.47 | 0.06 | 0.05 |
| 1B1.SI | HC Surgical Specialists Ltd | 0.12 | 0.02 | 0.02 |
| 1H3.SI | Clearbridge Health Ltd | 0.63 | -0.55 | -0.36 |
| 1J3.SI | Asian Healthcare Specialists Ltd | 0.06 | -0.01 | -0.01 |
| 505.SI | AsiaMedic Ltd | 1.53 | 0.07 | 0.03 |
| 516110.BO | Scandent Imaging Ltd | 0.14 | -0.55 | -0.49 |
| 5NG.SI | Healthway Medical Corporation Ltd | 0.1 | -0.64 | -0.59 |
| 8357.HK | Republic Healthcare Ltd | 0.05 | 0.22 | 0.21 |
| P8A.SI | Cordlife Group Ltd | 0.03 | 0.18 | 0.17 |
| Low | High | |
| Unlevered beta | 0 | 0.04 |
| Relevered beta | 0.01 | 0.06 |
| Adjusted relevered beta | 0.34 | 0.37 |
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.