OU8.SI WACC - Weighted Average Cost of Capital

The WACC of Centurion Corporation Ltd (OU8.SI) is 5.2%.

The Cost of Equity of Centurion Corporation Ltd (OU8.SI) is 6.15%.

The Cost of Debt of Centurion Corporation Ltd (OU8.SI) is 4.30%.

	Range	Selected
Cost of equity	5.20% - 7.10%	6.15%
Tax rate	14.70% - 18.70%	16.70%
Cost of debt	4.10% - 4.50%	4.30%
WACC	4.6% - 5.8%	5.2%

WACC

OU8.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.49	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.10%

Tax rate	14.70%	18.70%
Debt/Equity ratio	0.62	0.62
Cost of debt	4.10%	4.50%

After-tax WACC	4.6%	5.8%


Selected WACC	5.2%

OU8.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 OU8.SI:

cost_of_equity (6.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.