N2IU.SI WACC - Weighted Average Cost of Capital

The WACC of Mapletree Commercial Trust (N2IU.SI) is 5.6%.

The Cost of Equity of Mapletree Commercial Trust (N2IU.SI) is 6.20%.

The Cost of Debt of Mapletree Commercial Trust (N2IU.SI) is 5.15%.

	Range	Selected
Cost of equity	5.10% - 7.30%	6.20%
Tax rate	0.20% - 0.60%	0.40%
Cost of debt	4.40% - 5.90%	5.15%
WACC	4.7% - 6.5%	5.6%

WACC

N2IU.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.47	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	7.30%

Tax rate	0.20%	0.60%
Debt/Equity ratio	1.04	1.04
Cost of debt	4.40%	5.90%

After-tax WACC	4.7%	6.5%


Selected WACC	5.6%

N2IU.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 N2IU.SI:

cost_of_equity (6.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.