Rex International Holding Ltd
SGX:5WH
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Rex International Holding Ltd
SGX:5WH
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SG |
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S
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Shandong Link Science and Technology Co Ltd
SZSE:001207
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CN |
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B
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Beamr Imaging Ltd
NASDAQ:BMR
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IL |
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Marimaca Copper Corp
ASX:MC2
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CA |
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C
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China National Complete Plant Import & Export Corp Ltd
SZSE:000151
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CN |
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Nissin Foods Holdings Co Ltd
TSE:2897
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JP |
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Mitsui Mining and Smelting Co Ltd
TSE:5706
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JP |
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K
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Koatsu Gas Kogyo Co Ltd
TSE:4097
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JP |
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AnAn International Ltd
SGX:Y35
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SG |
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H
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Hanwha Galleria Corp
KRX:452260
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KR |
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H
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Hera SpA
XBER:HE9
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IT |
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Latrobe Magnesium Ltd
ASX:LMG
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AU |
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Focusrite PLC
LSE:TUNE
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UK |
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Acumentis Group Ltd
ASX:ACU
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AU |
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Karel Elektronik Sanayi ve Ticaret AS
IST:KAREL.E
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TR |
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Emeco Holdings Ltd
ASX:EHL
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AU |
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K
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Kri Kri Milk Industry SA
ATHEX:KRI
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GR |
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Gene Biotherapeutics Inc
OTC:CRXM
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US |
Discount Rate
5WH Cost of Equity
Discount Rate
5WH's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 7.76%.
The Beta, indicating the stock's volatility relative to the market, is 0.91, while the current Risk-Free Rate, based on government bond yields, is 3.95%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
5WH WACC
Discount Rate
5WH's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax.
The WACC stands at 11.46%. This includes the cost of equity at 7.76%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 14.56%, reflecting the interest rate on
5WH's debt adjusted for tax benefits. The weight of debt in the capital structure is 54.34%.
What is 5WH's discount rate?
5WH
's current Cost of Equity is 7.76%, while its WACC stands at 11.46%.
The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."
How is Cost of Equity for 5WH calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for
5WH
How is WACC for 5WH calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for
5WH
