1J4.SI WACC - Weighted Average Cost of Capital

The WACC of JEP Holdings Ltd (1J4.SI) is 8.3%.

The Cost of Equity of JEP Holdings Ltd (1J4.SI) is 9.15%.

The Cost of Debt of JEP Holdings Ltd (1J4.SI) is 4.25%.

	Range	Selected
Cost of equity	7.70% - 10.60%	9.15%
Tax rate	17.50% - 18.80%	18.15%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.1% - 9.6%	8.3%

WACC

1J4.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.98	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	10.60%

Tax rate	17.50%	18.80%
Debt/Equity ratio	0.17	0.17
Cost of debt	4.00%	4.50%

After-tax WACC	7.1%	9.6%


Selected WACC	8.3%

1J4.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 1J4.SI:

cost_of_equity (9.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.