S08.SI
Singapore Post Ltd
Price:  
0.60 
SGD
Volume:  
13,995,300.00
Singapore | Air Freight & Logistics
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S08.SI WACC - Weighted Average Cost of Capital

The WACC of Singapore Post Ltd (S08.SI) is 5.7%.

The Cost of Equity of Singapore Post Ltd (S08.SI) is 7.10%.
The Cost of Debt of Singapore Post Ltd (S08.SI) is 4.95%.

Range Selected
Cost of equity 5.50% - 8.70% 7.10%
Tax rate 20.60% - 22.00% 21.30%
Cost of debt 4.00% - 5.90% 4.95%
WACC 4.6% - 6.9% 5.7%
WACC

S08.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.56 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.70%
Tax rate 20.60% 22.00%
Debt/Equity ratio 0.72 0.72
Cost of debt 4.00% 5.90%
After-tax WACC 4.6% 6.9%
Selected WACC 5.7%

S08.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 S08.SI:

cost_of_equity (7.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.