RE4.SI
Geo Energy Resources Ltd
Price:  
0.36 
SGD
Volume:  
4,559,200.00
Singapore | Oil, Gas & Consumable Fuels
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RE4.SI WACC - Weighted Average Cost of Capital

The WACC of Geo Energy Resources Ltd (RE4.SI) is 10.5%.

The Cost of Equity of Geo Energy Resources Ltd (RE4.SI) is 6.70%.
The Cost of Debt of Geo Energy Resources Ltd (RE4.SI) is 22.75%.

Range Selected
Cost of equity 5.10% - 8.30% 6.70%
Tax rate 19.60% - 26.00% 22.80%
Cost of debt 4.20% - 41.30% 22.75%
WACC 4.4% - 16.5% 10.5%
WACC

RE4.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.47 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 8.30%
Tax rate 19.60% 26.00%
Debt/Equity ratio 0.59 0.59
Cost of debt 4.20% 41.30%
After-tax WACC 4.4% 16.5%
Selected WACC 10.5%

RE4.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 RE4.SI:

cost_of_equity (6.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.