NS8U.SI WACC - Weighted Average Cost of Capital

The WACC of Hutchison Port Holdings Trust (NS8U.SI) is 5.3%.

The Cost of Equity of Hutchison Port Holdings Trust (NS8U.SI) is 11.30%.

The Cost of Debt of Hutchison Port Holdings Trust (NS8U.SI) is 4.25%.

	Range	Selected
Cost of equity	7.60% - 15.00%	11.30%
Tax rate	28.60% - 32.40%	30.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.2% - 6.4%	5.3%

WACC

NS8U.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.06	2.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	15.00%

Tax rate	28.60%	32.40%
Debt/Equity ratio	2.52	2.52
Cost of debt	4.00%	4.50%

After-tax WACC	4.2%	6.4%


Selected WACC	5.3%

NS8U.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 NS8U.SI:

cost_of_equity (11.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.10%) * adjusted_beta (1.06) + 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.