V03.SI WACC - Weighted Average Cost of Capital

The WACC of Venture Corporation Ltd (V03.SI) is 8.0%.

The Cost of Equity of Venture Corporation Ltd (V03.SI) is 8.05%.

The Cost of Debt of Venture Corporation Ltd (V03.SI) is 4.25%.

	Range	Selected
Cost of equity	6.60% - 9.50%	8.05%
Tax rate	17.90% - 18.80%	18.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.6% - 9.4%	8.0%

WACC

V03.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.76	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.50%

Tax rate	17.90%	18.80%
Debt/Equity ratio	0	0
Cost of debt	4.00%	4.50%

After-tax WACC	6.6%	9.4%


Selected WACC	8.0%

V03.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 V03.SI:

cost_of_equity (8.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.