QS9.SI
Global Invacom Group Ltd
Price:  
0.02 
SGD
Volume:  
2,100,000
Singapore | Communications Equipment

QS9.SI WACC - Weighted Average Cost of Capital

The WACC of Global Invacom Group Ltd (QS9.SI) is 4.4%.

The Cost of Equity of Global Invacom Group Ltd (QS9.SI) is 6.05%.
The Cost of Debt of Global Invacom Group Ltd (QS9.SI) is 5.5%.

RangeSelected
Cost of equity4.9% - 7.2%6.05%
Tax rate15.4% - 46.9%31.15%
Cost of debt4.0% - 7.0%5.5%
WACC3.9% - 5.0%4.4%
WACC

QS9.SI WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.430.57
Additional risk adjustments0.0%0.5%
Cost of equity4.9%7.2%
Tax rate15.4%46.9%
Debt/Equity ratio
1.81.8
Cost of debt4.0%7.0%
After-tax WACC3.9%5.0%
Selected WACC4.4%

QS9.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 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.