N02.SI
NSL Ltd
Price:  
0.75 
SGD
Volume:  
224,300.00
Singapore | Construction Materials
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N02.SI WACC - Weighted Average Cost of Capital

The WACC of NSL Ltd (N02.SI) is 6.2%.

The Cost of Equity of NSL Ltd (N02.SI) is 6.60%.
The Cost of Debt of NSL Ltd (N02.SI) is 4.25%.

Range Selected
Cost of equity 5.30% - 7.90% 6.60%
Tax rate 21.50% - 28.30% 24.90%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.0% - 7.3% 6.2%
WACC

N02.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.51 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 7.90%
Tax rate 21.50% 28.30%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.00% 4.50%
After-tax WACC 5.0% 7.3%
Selected WACC 6.2%

N02.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 N02.SI:

cost_of_equity (6.60%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.