5OR.SI WACC - Weighted Average Cost of Capital

The WACC of Heatec Jietong Holdings Ltd (5OR.SI) is 7.2%.

The Cost of Equity of Heatec Jietong Holdings Ltd (5OR.SI) is 7.85%.

The Cost of Debt of Heatec Jietong Holdings Ltd (5OR.SI) is 6.20%.

	Range	Selected
Cost of equity	6.20% - 9.50%	7.85%
Tax rate	0.70% - 0.90%	0.80%
Cost of debt	5.40% - 7.00%	6.20%
WACC	5.9% - 8.5%	7.2%

WACC

5OR.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.69	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.50%

Tax rate	0.70%	0.90%
Debt/Equity ratio	0.61	0.61
Cost of debt	5.40%	7.00%

After-tax WACC	5.9%	8.5%


Selected WACC	7.2%

5OR.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 5OR.SI:

cost_of_equity (7.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.69) + 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.