JASKITA.KL
Jasa Kita Bhd
Price:  
0.37 
MYR
Volume:  
49,900.00
Malaysia | Machinery
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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.