XJB.SI WACC - Weighted Average Cost of Capital

The WACC of G H Y Culture & Media Holding Co Ltd (XJB.SI) is 6.3%.

The Cost of Equity of G H Y Culture & Media Holding Co Ltd (XJB.SI) is 6.25%.

The Cost of Debt of G H Y Culture & Media Holding Co Ltd (XJB.SI) is 7.15%.

	Range	Selected
Cost of equity	5.20% - 7.30%	6.25%
Tax rate	9.40% - 13.30%	11.35%
Cost of debt	7.00% - 7.30%	7.15%
WACC	5.4% - 7.1%	6.3%

WACC

XJB.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.39	0.5

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.20%	7.30%

Tax rate	9.40%	13.30%
Debt/Equity ratio	0.18	0.18
Cost of debt	7.00%	7.30%

After-tax WACC	5.4%	7.1%


Selected WACC	6.3%

XJB.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 XJB.SI:

cost_of_equity (6.25%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.39) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.