Low Keng Huat (Singapore) Ltd (F1E.SI) WACC Analysis

As of July 16, 2025, Low Keng Huat (Singapore) Ltd (F1E.SI) carries a Weighted Average Cost of Capital (WACC) of 7.3%. WACC reflects the blended rate Low Keng Huat (Singapore) Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 5.3%, the cost of debt is 4.0%, and the effective tax rate is 8.9%.

Breakdown of WACC Components

• Long-term bond rate: 2.7% – 3.2%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.5 – 0.83
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.76

What It Means for Investors

With a selected WACC of 7.3%, Low Keng Huat (Singapore) Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.