MXNU.SI WACC - Weighted Average Cost of Capital

The WACC of Elite Commercial REIT (MXNU.SI) is 5.7%.

The Cost of Equity of Elite Commercial REIT (MXNU.SI) is 7.30%.

The Cost of Debt of Elite Commercial REIT (MXNU.SI) is 5.10%.

	Range	Selected
Cost of equity	6.10% - 8.50%	7.30%
Tax rate	10.20% - 14.50%	12.35%
Cost of debt	4.30% - 5.90%	5.10%
WACC	4.9% - 6.6%	5.7%

WACC

MXNU.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.67	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	8.50%

Tax rate	10.20%	14.50%
Debt/Equity ratio	1.26	1.26
Cost of debt	4.30%	5.90%

After-tax WACC	4.9%	6.6%


Selected WACC	5.7%

MXNU.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 MXNU.SI:

cost_of_equity (7.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.67) + 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.