JASKITA.KL WACC - Weighted Average Cost of Capital

The WACC of Jasa Kita Bhd (JASKITA.KL) is 8.4%.

The Cost of Equity of Jasa Kita Bhd (JASKITA.KL) is 8.40%.

The Cost of Debt of Jasa Kita Bhd (JASKITA.KL) is 9.45%.

	Range	Selected
Cost of equity	6.30% - 10.50%	8.40%
Tax rate	14.20% - 47.10%	30.65%
Cost of debt	4.40% - 14.50%	9.45%
WACC	6.2% - 10.5%	8.4%

WACC

JASKITA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.36	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	10.50%

Tax rate	14.20%	47.10%
Debt/Equity ratio	0	0
Cost of debt	4.40%	14.50%

After-tax WACC	6.2%	10.5%


Selected WACC	8.4%

JASKITA.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 JASKITA.KL:

cost_of_equity (8.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.36) + 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.