JETSON.KL WACC - Weighted Average Cost of Capital
The WACC of Kumpulan Jetson Bhd (JETSON.KL) is 7.9%.
| Range | Selected | |
| Cost of equity | 7.5% - 12.0% | 9.75% |
| Tax rate | 20.2% - 31.2% | 25.7% |
| Cost of debt | 4.8% - 7.0% | 5.9% |
| WACC | 6.2% - 9.5% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.54 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 12.0% |
| Tax rate | 20.2% | 31.2% |
| Debt/Equity ratio | 0.52 | 0.52 |
| Cost of debt | 4.8% | 7.0% |
| After-tax WACC | 6.2% | 9.5% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JETSON.KL | Kumpulan Jetson Bhd | 0.52 | 0.1 | 0.07 |
| BTW.BK | BT Wealth Industries PCL | 1.04 | 1.36 | 0.76 |
| DKLS.KL | Dkls Industries Bhd | 0.12 | -0.24 | -0.22 |
| DYNACIA.KL | Dynaciate Group Bhd | 0.59 | 2.07 | 1.42 |
| IREKA.KL | Ireka Corporation Bhd | 1.03 | 0.43 | 0.24 |
| KERJAYA.KL | Kerjaya Prospek Group Bhd | 0.01 | 0.73 | 0.72 |
| MBG.VN | MBG Group JSC | 0.2 | 0.64 | 0.55 |
| PLB.KL | Plb Engineering Bhd | 1.47 | -0.15 | -0.07 |
| SCI.BK | SCI Electric PCL | 0.42 | 1.36 | 1.03 |
| TSRCAP.KL | TSR Capital Bhd | 0.82 | 0.06 | 0.04 |
| Low | High | |
| Unlevered beta | 0.17 | 0.62 |
| Relevered beta | 0.31 | 0.87 |
| Adjusted relevered beta | 0.54 | 0.91 |
JETSON.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 JETSON.KL:
cost_of_equity (9.75%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.54) + 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.