WPC.SI WACC - Weighted Average Cost of Capital
The WACC of Vallianz Holdings Ltd (WPC.SI) is 5.6%.
| Range | Selected | |
| Cost of equity | 8.4% - 18.5% | 13.45% |
| Tax rate | 8.9% - 14.5% | 11.7% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 4.5% - 6.7% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.11 | 2.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 18.5% |
| Tax rate | 8.9% | 14.5% |
| Debt/Equity ratio | 4.64 | 4.64 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 4.5% | 6.7% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WPC.SI | Vallianz Holdings Ltd | 4.64 | 0.46 | 0.09 |
| 5UL.SI | Atlantic Navigation Holdings (Singapore) Ltd | 0.01 | 0.3 | 0.3 |
| 5WH.SI | Rex International Holding Ltd | 0.77 | 1.15 | 0.69 |
| B9S.SI | Cosmosteel Holdings Ltd | 0.43 | 0.19 | 0.14 |
| BLH.SI | Hai Leck Holdings Ltd | 0.03 | -0.14 | -0.14 |
| BLZ.SI | Advanced Holdings Ltd | 1.01 | 1.91 | 1.02 |
| GLOBALVECT.NS | Global Vectra Helicorp Ltd | 1.27 | 1.53 | 0.73 |
| NO4.SI | Dyna-Mac Holdings Ltd | 0.06 | 0.7 | 0.67 |
| PVT.VN | Petrovietnam Transportation Corp | 0.89 | 1.05 | 0.59 |
| RF7.SI | AMOS Group Ltd | 1.5 | 0.1 | 0.04 |
| Low | High | |
| Unlevered beta | 0.23 | 0.62 |
| Relevered beta | 1.16 | 3.12 |
| Adjusted relevered beta | 1.11 | 2.42 |
WPC.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 WPC.SI:
cost_of_equity (13.45%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.11) + 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.