BJLAND.KL
Berjaya Land Bhd
Price:  
0.28 
MYR
Volume:  
1,026,800.00
Malaysia | Hotels, Restaurants & Leisure
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BJLAND.KL WACC - Weighted Average Cost of Capital

The WACC of Berjaya Land Bhd (BJLAND.KL) is 5.5%.

The Cost of Equity of Berjaya Land Bhd (BJLAND.KL) is 11.55%.
The Cost of Debt of Berjaya Land Bhd (BJLAND.KL) is 5.00%.

Range Selected
Cost of equity 9.60% - 13.50% 11.55%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.0% - 5.9% 5.5%
WACC

BJLAND.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.85 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 13.50%
Tax rate 24.00% 24.00%
Debt/Equity ratio 3.69 3.69
Cost of debt 5.00% 5.00%
After-tax WACC 5.0% 5.9%
Selected WACC 5.5%

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 (11.55%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.85) + 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.