The WACC of Amcorp Global Ltd (S9B.SI) is 4.9%.
| Range | Selected | |
| Cost of equity | 4.10% - 5.70% | 4.90% |
| Tax rate | 7.20% - 14.20% | 10.70% |
| Cost of debt | 4.00% - 7.00% | 5.50% |
| WACC | 3.9% - 5.9% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.28 | 0.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.10% | 5.70% |
| Tax rate | 7.20% | 14.20% |
| Debt/Equity ratio | 1.47 | 1.47 |
| Cost of debt | 4.00% | 7.00% |
| After-tax WACC | 3.9% | 5.9% |
| Selected WACC | 4.9% | |
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 S9B.SI:
cost_of_equity (4.90%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.28) + 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.