The WACC of Global Invacom Group Ltd (QS9.SI) is 4.4%.
Range | Selected | |
Cost of equity | 4.9% - 7.2% | 6.05% |
Tax rate | 15.4% - 46.9% | 31.15% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 3.9% - 5.0% | 4.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.43 | 0.57 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.9% | 7.2% |
Tax rate | 15.4% | 46.9% |
Debt/Equity ratio | 1.8 | 1.8 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 3.9% | 5.0% |
Selected WACC | 4.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
QS9.SI | Global Invacom Group Ltd | 1.8 | 0.22 | 0.09 |
005870.KS | Huneed Technologies | 0.01 | -0.39 | -0.39 |
036690.KQ | Commax Co Ltd | 0.54 | 0.65 | 0.45 |
081580.KQ | Sungwoo Electronics Co Ltd | 0.5 | 0.33 | 0.23 |
1087.HK | InvesTech Holdings Ltd | 3.15 | 0.08 | 0.02 |
1720.HK | Putian Communication Group Ltd | 3.06 | 1.66 | 0.47 |
482.HK | Sandmartin International Holdings Ltd | 3.85 | -0.33 | -0.08 |
6715.T | Nakayo Inc | 1.19 | -0.23 | -0.12 |
A31.SI | Addvalue Technologies Ltd | 0.12 | 0.09 | 0.08 |
N01.SI | Nera Telecommunications Ltd | 0.41 | 0.3 | 0.22 |
Low | High | |
Unlevered beta | 0.06 | 0.14 |
Relevered beta | 0.15 | 0.36 |
Adjusted relevered beta | 0.43 | 0.57 |
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 QS9.SI:
cost_of_equity (6.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.