BEW.SI WACC - Weighted Average Cost of Capital

The WACC of JB Foods Ltd (BEW.SI) is 4.9%.

The Cost of Equity of JB Foods Ltd (BEW.SI) is 6.50%.

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

	Range	Selected
Cost of equity	4.80% - 8.20%	6.50%
Tax rate	15.80% - 20.20%	18.00%
Cost of debt	4.30% - 6.30%	5.30%
WACC	3.9% - 5.9%	4.9%

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	0.4	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	8.20%

Tax rate	15.80%	20.20%
Debt/Equity ratio	2.51	2.51
Cost of debt	4.30%	6.30%

After-tax WACC	3.9%	5.9%


Selected WACC	4.9%

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 (6.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.4) + 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.