CJCEN.KL WACC - Weighted Average Cost of Capital

The WACC of CJ Century Logistics Holdings Bhd (CJCEN.KL) is 9.7%.

The Cost of Equity of CJ Century Logistics Holdings Bhd (CJCEN.KL) is 8.85%.

The Cost of Debt of CJ Century Logistics Holdings Bhd (CJCEN.KL) is 14.35%.

	Range	Selected
Cost of equity	7.90% - 9.80%	8.85%
Tax rate	26.50% - 30.20%	28.35%
Cost of debt	4.90% - 23.80%	14.35%
WACC	5.0% - 14.5%	9.7%

WACC

CJCEN.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.6	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	9.80%

Tax rate	26.50%	30.20%
Debt/Equity ratio	2.2	2.2
Cost of debt	4.90%	23.80%

After-tax WACC	5.0%	14.5%


Selected WACC	9.7%

CJCEN.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 CJCEN.KL:

cost_of_equity (8.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.6) + 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.