BEW.SI
JB Foods Ltd
Price:  
0.45 
SGD
Volume:  
80,700.00
Malaysia | Food Products
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BEW.SI WACC - Weighted Average Cost of Capital

The WACC of JB Foods Ltd (BEW.SI) is 5.0%.

The Cost of Equity of JB Foods Ltd (BEW.SI) is 6.85%.
The Cost of Debt of JB Foods Ltd (BEW.SI) is 5.30%.

Range Selected
Cost of equity 5.40% - 8.30% 6.85%
Tax rate 15.80% - 20.20% 18.00%
Cost of debt 4.30% - 6.30% 5.30%
WACC 4.1% - 6.0% 5.0%
WACC

BEW.SI WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.53 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 8.30%
Tax rate 15.80% 20.20%
Debt/Equity ratio 2.56 2.56
Cost of debt 4.30% 6.30%
After-tax WACC 4.1% 6.0%
Selected WACC 5.0%

BEW.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 BEW.SI:

cost_of_equity (6.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.