J.BK WACC - Weighted Average Cost of Capital

The WACC of JAS Asset PCL (J.BK) is 9.3%.

The Cost of Equity of JAS Asset PCL (J.BK) is 8.35%.

The Cost of Debt of JAS Asset PCL (J.BK) is 12.65%.

	Range	Selected
Cost of equity	5.30% - 11.40%	8.35%
Tax rate	20.40% - 22.20%	21.30%
Cost of debt	5.70% - 19.60%	12.65%
WACC	4.8% - 13.8%	9.3%

WACC

J.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.38	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	11.40%

Tax rate	20.40%	22.20%
Debt/Equity ratio	1.61	1.61
Cost of debt	5.70%	19.60%

After-tax WACC	4.8%	13.8%


Selected WACC	9.3%

J.BK'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 J.BK:

cost_of_equity (8.35%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.38) + 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.