BJLAND.KL WACC - Weighted Average Cost of Capital
The WACC of Berjaya Land Bhd (BJLAND.KL) is 5.4%.
| Range | Selected | |
| Cost of equity | 9.3% - 13.6% | 11.45% |
| Tax rate | 24.0% - 24.0% | 24% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 5.8% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.8 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 13.6% |
| Tax rate | 24.0% | 24.0% |
| Debt/Equity ratio | 3.82 | 3.82 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 5.8% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BJLAND.KL | Berjaya Land Bhd | 3.82 | 0.95 | 0.24 |
| 114090.KS | Grand Korea Leisure Co Ltd | 0.06 | 0.19 | 0.18 |
| 1180.HK | Paradise Entertainment Ltd | 0.21 | 0.79 | 0.68 |
| 1680.HK | Macau Legend Development Ltd | 4.9 | 0.87 | 0.18 |
| 5EL.SI | Lasseters International Holdings Ltd | 1.72 | 0.91 | 0.39 |
| BJTOTO.KL | Berjaya Sports Toto Bhd | 0.54 | 0.15 | 0.11 |
| MAGNUM.KL | Magnum Bhd | 0.39 | 0.85 | 0.65 |
| OLYMPIA.KL | Olympia Industries Bhd | 3.34 | 0.23 | 0.07 |
| RGB.KL | RGB International Bhd | 0.01 | 1.41 | 1.4 |
| SGR.AX | Star Entertainment Group Ltd | 0.81 | 0.12 | 0.07 |
| Low | High | |
| Unlevered beta | 0.18 | 0.3 |
| Relevered beta | 0.7 | 1.18 |
| Adjusted relevered beta | 0.8 | 1.12 |
BJLAND.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 BJLAND.KL:
cost_of_equity (11.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.8) + 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.