RCU.SI WACC - Weighted Average Cost of Capital

The WACC of Revez Corporation Ltd (RCU.SI) is 6.2%.

The Cost of Equity of Revez Corporation Ltd (RCU.SI) is 6.30%.

The Cost of Debt of Revez Corporation Ltd (RCU.SI) is 5.50%.

	Range	Selected
Cost of equity	5.20% - 7.40%	6.30%
Tax rate	0.30% - 0.70%	0.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.1% - 7.4%	6.2%

WACC

RCU.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.48	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.40%

Tax rate	0.30%	0.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	7.00%

After-tax WACC	5.1%	7.4%


Selected WACC	6.2%

RCU.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 RCU.SI:

cost_of_equity (6.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.