The WACC of Berjaya Food Bhd (BJFOOD.KL) is 5.6%.
Range | Selected | |
Cost of equity | 7.6% - 10.1% | 8.85% |
Tax rate | 33.7% - 36.4% | 35.05% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.1% - 6.1% | 5.6% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 0.55 | 0.68 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.6% | 10.1% |
Tax rate | 33.7% | 36.4% |
Debt/Equity ratio | 1.36 | 1.36 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.1% | 6.1% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BJFOOD.KL | Berjaya Food Bhd | 1.36 | 0.14 | 0.07 |
1488.HK | Best Food Holding Company Ltd | 0.54 | 0.33 | 0.24 |
2108.HK | K2 F&B Holdings Ltd | 3.94 | -0.09 | -0.02 |
3075.T | Choushimaru Co Ltd | 0.02 | 0.33 | 0.32 |
3221.T | Yossix Co Ltd | 1.12 | 0.53 | 0.3 |
7562.T | Anrakutei Co Ltd | 0.73 | 0.12 | 0.08 |
8207.T | Ten Allied Co Ltd | 0.2 | 0.37 | 0.33 |
BRAHIMS.KL | Brahim's Holdings Bhd | 78.14 | 1.17 | 0.02 |
OVERSEA.KL | Oversea Enterprise Bhd | 0.06 | 1.53 | 1.47 |
SNP.BK | S & P Syndicate PCL | 0.17 | 0.26 | 0.24 |
Low | High | |
Unlevered beta | 0.18 | 0.27 |
Relevered beta | 0.33 | 0.52 |
Adjusted relevered beta | 0.55 | 0.68 |
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 BJFOOD.KL:
cost_of_equity (8.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.55) + 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.