JASKITA.KL WACC - Weighted Average Cost of Capital

The WACC of Jasa Kita Bhd (JASKITA.KL) is 10.1%.

The Cost of Equity of Jasa Kita Bhd (JASKITA.KL) is 10.10%.

The Cost of Debt of Jasa Kita Bhd (JASKITA.KL) is 15.20%.

	Range	Selected
Cost of equity	6.20% - 14.00%	10.10%
Tax rate	21.80% - 48.80%	35.30%
Cost of debt	4.40% - 26.00%	15.20%
WACC	6.2% - 14.0%	10.1%

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	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	14.00%

Tax rate	21.80%	48.80%
Debt/Equity ratio	0	0
Cost of debt	4.40%	26.00%

After-tax WACC	6.2%	14.0%


Selected WACC	10.1%

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 (10.10%) = 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.