P15.SI WACC - Weighted Average Cost of Capital

The WACC of Pacific Century Regional Developments Ltd (P15.SI) is 7.4%.

The Cost of Equity of Pacific Century Regional Developments Ltd (P15.SI) is 6.30%.

The Cost of Debt of Pacific Century Regional Developments Ltd (P15.SI) is 13.65%.

	Range	Selected
Cost of equity	5.30% - 7.30%	6.30%
Tax rate	1.70% - 2.50%	2.10%
Cost of debt	4.60% - 22.70%	13.65%
WACC	5.2% - 9.6%	7.4%

WACC

P15.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.4	0.51

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.30%	7.30%

Tax rate	1.70%	2.50%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.60%	22.70%

After-tax WACC	5.2%	9.6%


Selected WACC	7.4%

P15.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 P15.SI:

cost_of_equity (6.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.4) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.