JKGLAND.KL WACC - Weighted Average Cost of Capital

The WACC of JKG Land Bhd (JKGLAND.KL) is 8.1%.

The Cost of Equity of JKG Land Bhd (JKGLAND.KL) is 12.35%.

The Cost of Debt of JKG Land Bhd (JKGLAND.KL) is 4.80%.

	Range	Selected
Cost of equity	10.80% - 13.90%	12.35%
Tax rate	25.90% - 26.80%	26.35%
Cost of debt	4.60% - 5.00%	4.80%
WACC	7.2% - 9.0%	8.1%

WACC

JKGLAND.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.02	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.90%

Tax rate	25.90%	26.80%
Debt/Equity ratio	0.93	0.93
Cost of debt	4.60%	5.00%

After-tax WACC	7.2%	9.0%


Selected WACC	8.1%

JKGLAND.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 JKGLAND.KL:

cost_of_equity (12.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.02) + 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.