Z59.SI WACC - Weighted Average Cost of Capital

The WACC of Yoma Strategic Holdings Ltd (Z59.SI) is 6.8%.

The Cost of Equity of Yoma Strategic Holdings Ltd (Z59.SI) is 9.10%.

The Cost of Debt of Yoma Strategic Holdings Ltd (Z59.SI) is 6.60%.

	Range	Selected
Cost of equity	7.70% - 10.50%	9.10%
Tax rate	15.70% - 23.90%	19.80%
Cost of debt	6.30% - 6.90%	6.60%
WACC	6.3% - 7.3%	6.8%

WACC

Z59.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.99	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	10.50%

Tax rate	15.70%	23.90%
Debt/Equity ratio	1.49	1.49
Cost of debt	6.30%	6.90%

After-tax WACC	6.3%	7.3%


Selected WACC	6.8%

Z59.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 Z59.SI:

cost_of_equity (9.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.99) + 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.