P36.SI
Pan Hong Holdings Group Ltd
Price:  
0.07 
SGD
Volume:  
441,000
Hong Kong | Real Estate Management & Development

P36.SI WACC - Weighted Average Cost of Capital

The WACC of Pan Hong Holdings Group Ltd (P36.SI) is 7.4%.

The Cost of Equity of Pan Hong Holdings Group Ltd (P36.SI) is 5.3%.
The Cost of Debt of Pan Hong Holdings Group Ltd (P36.SI) is 18.65%.

RangeSelected
Cost of equity4.5% - 6.1%5.3%
Tax rate40.0% - 41.2%40.6%
Cost of debt4.0% - 33.3%18.65%
WACC3.7% - 11.0%7.4%
WACC

P36.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.350.39
Additional risk adjustments0.0%0.5%
Cost of equity4.5%6.1%
Tax rate40.0%41.2%
Debt/Equity ratio
0.570.57
Cost of debt4.0%33.3%
After-tax WACC3.7%11.0%
Selected WACC7.4%

P36.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 P36.SI:

cost_of_equity (5.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.