JERASIA.KL WACC - Weighted Average Cost of Capital

The WACC of Jerasia Capital Bhd (JERASIA.KL) is 6.2%.

The Cost of Equity of Jerasia Capital Bhd (JERASIA.KL) is 392.90%.

The Cost of Debt of Jerasia Capital Bhd (JERASIA.KL) is 5.50%.

	Range	Selected
Cost of equity	293.00% - 492.80%	392.90%
Tax rate	0.50% - 0.80%	0.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.5% - 7.9%	6.2%

WACC

JERASIA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	42.23	62.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	293.00%	492.80%

Tax rate	0.50%	0.80%
Debt/Equity ratio	529.2	529.2
Cost of debt	4.00%	7.00%

After-tax WACC	4.5%	7.9%


Selected WACC	6.2%

JERASIA.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 JERASIA.KL:

cost_of_equity (392.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (42.23) + 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.