BJCORP.KL
Berjaya Corporation Bhd
Price:  
0.28 
MYR
Volume:  
4,789,700
Malaysia | Industrial Conglomerates

BJCORP.KL WACC - Weighted Average Cost of Capital

The WACC of Berjaya Corporation Bhd (BJCORP.KL) is 7.0%.

The Cost of Equity of Berjaya Corporation Bhd (BJCORP.KL) is 22.85%.
The Cost of Debt of Berjaya Corporation Bhd (BJCORP.KL) is 5%.

RangeSelected
Cost of equity19.6% - 26.1%22.85%
Tax rate24.0% - 24.0%24%
Cost of debt5.0% - 5.0%5%
WACC6.5% - 7.5%7.0%
WACC

BJCORP.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta2.312.71
Additional risk adjustments0.0%0.5%
Cost of equity19.6%26.1%
Tax rate24.0%24.0%
Debt/Equity ratio
4.944.94
Cost of debt5.0%5.0%
After-tax WACC6.5%7.5%
Selected WACC7.0%

BJCORP.KL'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 BJCORP.KL:

cost_of_equity (22.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (2.31) + 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.