JAG.KL WACC - Weighted Average Cost of Capital
The WACC of JAG Bhd (JAG.KL) is 8.1%.
| Range | Selected | |
| Cost of equity | 8.1% - 10.6% | 9.35% |
| Tax rate | 29.5% - 34.2% | 31.85% |
| Cost of debt | 7.0% - 7.4% | 7.2% |
| WACC | 7.2% - 9.0% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.63 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 10.6% |
| Tax rate | 29.5% | 34.2% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 7.0% | 7.4% |
| After-tax WACC | 7.2% | 9.0% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JAG.KL | JAG Bhd | 0.39 | 0.77 | 0.61 |
| 2195.T | Amita Holdings Co Ltd | 0.29 | 0.97 | 0.81 |
| 309.HK | Xinhua News Media Holdings Ltd | 0.17 | 0.35 | 0.32 |
| 567.SI | Colex Holdings Ltd | 0.12 | 0.81 | 0.75 |
| 5CT.SI | Ecowise Holdings Ltd | 0.33 | -0.71 | -0.58 |
| BTECH.KL | Brite Tech Bhd | 0.83 | 0.42 | 0.27 |
| CYPARK.KL | Cypark Resources Bhd | 2.01 | 0.91 | 0.38 |
| GFM.KL | Gfm Services Bhd | 2 | 1.81 | 0.75 |
| HHHCORP.KL | Hiap Huat Holdings Bhd | 4.4 | 0.49 | 0.12 |
| TEXCYCL.KL | Tex Cycle Technology (M) Bhd | 0.11 | 0.42 | 0.39 |
| Low | High | |
| Unlevered beta | 0.35 | 0.47 |
| Relevered beta | 0.45 | 0.6 |
| Adjusted relevered beta | 0.63 | 0.73 |
JAG.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 JAG.KL:
cost_of_equity (9.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.63) + 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.