S7OU.SI WACC - Weighted Average Cost of Capital

The WACC of Asian Pay Television Trust (S7OU.SI) is 5.8%.

The Cost of Equity of Asian Pay Television Trust (S7OU.SI) is 23.65%.

The Cost of Debt of Asian Pay Television Trust (S7OU.SI) is 5.15%.

	Range	Selected
Cost of equity	16.00% - 31.30%	23.65%
Tax rate	26.60% - 33.20%	29.90%
Cost of debt	4.00% - 6.30%	5.15%
WACC	4.4% - 7.3%	5.8%

WACC

S7OU.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.61	4.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	31.30%

Tax rate	26.60%	33.20%
Debt/Equity ratio	7.93	7.93
Cost of debt	4.00%	6.30%

After-tax WACC	4.4%	7.3%


Selected WACC	5.8%

S7OU.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 S7OU.SI:

cost_of_equity (23.65%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (2.61) + 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.