BJFOOD.KL
Berjaya Food Bhd
Price:  
0.28 
MYR
Volume:  
151,400.00
Malaysia | Hotels, Restaurants & Leisure
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BJFOOD.KL WACC - Weighted Average Cost of Capital

The WACC of Berjaya Food Bhd (BJFOOD.KL) is 5.6%.

The Cost of Equity of Berjaya Food Bhd (BJFOOD.KL) is 8.85%.
The Cost of Debt of Berjaya Food Bhd (BJFOOD.KL) is 5.00%.

Range Selected
Cost of equity 7.60% - 10.10% 8.85%
Tax rate 33.70% - 36.40% 35.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 6.1% 5.6%
WACC

BJFOOD.KL WACC calculation

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 7.60% 10.10%
Tax rate 33.70% 36.40%
Debt/Equity ratio 1.36 1.36
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 6.1%
Selected WACC 5.6%

BJFOOD.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 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.