S69.SI WACC - Weighted Average Cost of Capital

The WACC of Serial System Ltd (S69.SI) is 7.2%.

The Cost of Equity of Serial System Ltd (S69.SI) is 6.45%.

The Cost of Debt of Serial System Ltd (S69.SI) is 10.25%.

	Range	Selected
Cost of equity	4.70% - 8.20%	6.45%
Tax rate	20.00% - 32.20%	26.10%
Cost of debt	6.00% - 14.50%	10.25%
WACC	4.8% - 9.5%	7.2%

WACC

S69.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.39	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	8.20%

Tax rate	20.00%	32.20%
Debt/Equity ratio	4.41	4.41
Cost of debt	6.00%	14.50%

After-tax WACC	4.8%	9.5%


Selected WACC	7.2%

S69.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 S69.SI:

cost_of_equity (6.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.39) + 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.