BEW.SI WACC - Weighted Average Cost of Capital

The WACC of JB Foods Ltd (BEW.SI) is 7.3%.

The Cost of Equity of JB Foods Ltd (BEW.SI) is 9.55%.

The Cost of Debt of JB Foods Ltd (BEW.SI) is 8.10%.

	Range	Selected
Cost of equity	7.30% - 11.80%	9.55%
Tax rate	20.20% - 25.60%	22.90%
Cost of debt	8.00% - 8.20%	8.10%
WACC	6.6% - 7.9%	7.3%

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	0.9	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	11.80%

Tax rate	20.20%	25.60%
Debt/Equity ratio	2.24	2.24
Cost of debt	8.00%	8.20%

After-tax WACC	6.6%	7.9%


Selected WACC	7.3%

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 (9.55%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.9) + 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.