U13.SI
United Overseas Insurance Ltd
Price:  
7.80 
SGD
Volume:  
10,000.00
Singapore | Insurance
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U13.SI WACC - Weighted Average Cost of Capital

The WACC of United Overseas Insurance Ltd (U13.SI) is 6.5%.

The Cost of Equity of United Overseas Insurance Ltd (U13.SI) is 6.50%.
The Cost of Debt of United Overseas Insurance Ltd (U13.SI) is 5.00%.

Range Selected
Cost of equity 5.20% - 7.80% 6.50%
Tax rate 15.90% - 18.50% 17.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.2% - 7.8% 6.5%
WACC

U13.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.48 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 7.80%
Tax rate 15.90% 18.50%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 5.2% 7.8%
Selected WACC 6.5%

U13.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 U13.SI:

cost_of_equity (6.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.