P15.SI WACC - Weighted Average Cost of Capital

The WACC of Pacific Century Regional Developments Ltd (P15.SI) is 7.2%.

The Cost of Equity of Pacific Century Regional Developments Ltd (P15.SI) is 6.10%.

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

	Range	Selected
Cost of equity	5.10% - 7.10%	6.10%
Tax rate	1.70% - 2.50%	2.10%
Cost of debt	4.60% - 22.70%	13.65%
WACC	5.0% - 9.3%	7.2%

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	0.46	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	7.10%

Tax rate	1.70%	2.50%
Debt/Equity ratio	0.17	0.17
Cost of debt	4.60%	22.70%

After-tax WACC	5.0%	9.3%


Selected WACC	7.2%

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 (6.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.