Question 1

What is Rectitude Holdings Ltd Ordinary Shares's WACC?

Accepted Answer

Rectitude Holdings Ltd Ordinary Shares (RECT) has a Weighted Average Cost of Capital (WACC) of 6.74%. This is calculated using a Cost of Equity of 7.07% (via CAPM with a beta of 0.37) and a pre-tax Cost of Debt of 6.20%, with an equity weight of 84.54% in the capital structure.

Question 2

Is Rectitude Holdings Ltd Ordinary Shares's WACC high or low?

Accepted Answer

Rectitude Holdings Ltd Ordinary Shares's WACC of 6.74% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Rectitude Holdings Ltd Ordinary Shares's WACC calculated?

Accepted Answer

Rectitude Holdings Ltd Ordinary Shares's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.07% is derived from the CAPM model using a beta of 0.37. The pre-tax Cost of Debt (Rd) is 6.20%. The capital structure is 84.54% equity and 15.46% debt.

Rectitude Holdings Ltd Ordinary Shares (RECT) — WACC 分析

WACC 构成

解读

Rectitude Holdings Ltd Ordinary Shares（RECT）WACC：6.74%

WACC计算器

Rectitude Holdings Ltd Ordinary Shares（RECT） WACC 解读

RECT 公司分析

RECT DCF 估值

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