Overview

Last Modified: 20 October 2022

Basic Info:

Greetings! 👋

In this dashboard, we look at the costs of capital for Singapore companies across various industries.

The hurdle rates represent benchmarks that these companies have to beat to create value.

Many companies measure success using lower thresholds, with some arguing that making money (having positive profits) is good enough and others positing that being more profitable than competitors in the same business makes a firm a good company.

However, without considerations given to the costs of capital, returns are only half the picture.

After all, capital is invested in businesses and that capital invested elsewhere in equivalent risk investments could have earned a return.

The composite measure of excess returns is what we estimate here.

Data:

Singapore Data Sets

References:

Optimal Capital Structure

Risk Premium

Credits:

Nico