JFTECH.KL WACC - Weighted Average Cost of Capital

The WACC of JF Technology Bhd (JFTECH.KL) is 11.8%.

The Cost of Equity of JF Technology Bhd (JFTECH.KL) is 11.90%.

The Cost of Debt of JF Technology Bhd (JFTECH.KL) is 4.45%.

	Range	Selected
Cost of equity	9.50% - 14.30%	11.90%
Tax rate	1.40% - 2.90%	2.15%
Cost of debt	4.40% - 4.50%	4.45%
WACC	9.5% - 14.2%	11.8%

WACC

JFTECH.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.84	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	14.30%

Tax rate	1.40%	2.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.40%	4.50%

After-tax WACC	9.5%	14.2%


Selected WACC	11.8%

JFTECH.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 JFTECH.KL:

cost_of_equity (11.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.84) + 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.