5TP.SI WACC - Weighted Average Cost of Capital

The WACC of CNMC Goldmine Holdings Ltd (5TP.SI) is 7.9%.

The Cost of Equity of CNMC Goldmine Holdings Ltd (5TP.SI) is 7.90%.

The Cost of Debt of CNMC Goldmine Holdings Ltd (5TP.SI) is 4.95%.

	Range	Selected
Cost of equity	6.60% - 9.20%	7.90%
Tax rate	32.70% - 34.40%	33.55%
Cost of debt	4.00% - 5.90%	4.95%
WACC	6.6% - 9.2%	7.9%

WACC

5TP.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	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.20%

Tax rate	32.70%	34.40%
Debt/Equity ratio	0	0
Cost of debt	4.00%	5.90%

After-tax WACC	6.6%	9.2%


Selected WACC	7.9%

5TP.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 5TP.SI:

cost_of_equity (7.90%) = 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.