The WACC of Joh Friedrich Behrens AG (JFB.SG) is 9.8%.
| Range | Selected | |
| Cost of equity | 2,796.80% - 16,070.80% | 9,433.80% |
| Tax rate | 30.00% - 30.00% | 30.00% |
| Cost of debt | 8.30% - 15.40% | 11.85% |
| WACC | 6.3% - 13.4% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 547.89 | 2633.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 2,796.80% | 16,070.80% |
| Tax rate | 30.00% | 30.00% |
| Debt/Equity ratio | 6200 | 6200 |
| Cost of debt | 8.30% | 15.40% |
| After-tax WACC | 6.3% | 13.4% |
| Selected WACC | 9.8% | |
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 JFB.SG:
cost_of_equity (9,433.80%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (547.89) + 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.