JCBNEXT.KL WACC - Weighted Average Cost of Capital
The WACC of JcbNext Bhd (JCBNEXT.KL) is 9.3%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.7% | 9.3% |
| Tax rate | 8.2% - 10.7% | 9.45% |
| Cost of debt | 4.4% - 11.4% | 7.9% |
| WACC | 7.9% - 10.7% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.6 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.7% |
| Tax rate | 8.2% | 10.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.4% | 11.4% |
| After-tax WACC | 7.9% | 10.7% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JCBNEXT.KL | JcbNext Bhd | 0 | 0.4 | 0.4 |
| 3691.T | Realworld Inc | 0.24 | 0.73 | 0.6 |
| 6046.T | Linkbal Inc | 0.05 | 1.02 | 0.97 |
| 6573.T | Agile Media Network Inc | 0.06 | 0.7 | 0.66 |
| BTECH.KL | Brite Tech Bhd | 0.89 | 0.5 | 0.28 |
| FDV.AX | Frontier Digital Ventures Ltd | 0.01 | -0.02 | -0.02 |
| ICONIC.KL | Iconic Worldwide Bhd | 0.66 | 0.06 | 0.04 |
| ICQ.AX | Icar Asia Ltd | 0.01 | 1.51 | 1.49 |
| INCKEN.KL | Inch Kenneth Kajang Rubber PLC | 0.01 | 0.41 | 0.4 |
| VIS.KL | VisDynamics Holdings Bhd | 0 | 1.58 | 1.57 |
| Low | High | |
| Unlevered beta | 0.4 | 0.62 |
| Relevered beta | 0.4 | 0.63 |
| Adjusted relevered beta | 0.6 | 0.75 |
JCBNEXT.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 JCBNEXT.KL:
cost_of_equity (9.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.6) + 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.