P15.SI WACC - Weighted Average Cost of Capital

The WACC of Pacific Century Regional Developments Ltd (P15.SI) is 6.4%.

The Cost of Equity of Pacific Century Regional Developments Ltd (P15.SI) is 6.45%.

The Cost of Debt of Pacific Century Regional Developments Ltd (P15.SI) is 6.25%.

	Range	Selected
Cost of equity	5.30% - 7.60%	6.45%
Tax rate	1.20% - 1.60%	1.40%
Cost of debt	5.50% - 7.00%	6.25%
WACC	5.3% - 7.4%	6.4%

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	0.51	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.60%

Tax rate	1.20%	1.60%
Debt/Equity ratio	0.24	0.24
Cost of debt	5.50%	7.00%

After-tax WACC	5.3%	7.4%


Selected WACC	6.4%

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 (6.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.