The WACC of JCK International PCL (JCK.BK) is 14.6%.
| Range | Selected | |
| Cost of equity | 30.90% - 41.10% | 36.00% |
| Tax rate | 6.60% - 15.80% | 11.20% |
| Cost of debt | 7.20% - 22.60% | 14.90% |
| WACC | 8.5% - 20.7% | 14.6% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 3.8 | 4.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 30.90% | 41.10% |
| Tax rate | 6.60% | 15.80% |
| Debt/Equity ratio | 12.09 | 12.09 |
| Cost of debt | 7.20% | 22.60% |
| After-tax WACC | 8.5% | 20.7% |
| Selected WACC | 14.6% | |
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 JCK.BK:
cost_of_equity (36.00%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (3.8) + 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.