QS9.SI WACC - Weighted Average Cost of Capital
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 |
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.