JLB.SI WACC - Weighted Average Cost of Capital

The WACC of Grand Venture Technology Ltd (JLB.SI) is 7.1%.

The Cost of Equity of Grand Venture Technology Ltd (JLB.SI) is 8.10%.

The Cost of Debt of Grand Venture Technology Ltd (JLB.SI) is 4.55%.

	Range	Selected
Cost of equity	5.80% - 10.40%	8.10%
Tax rate	11.60% - 14.50%	13.05%
Cost of debt	4.50% - 4.60%	4.55%
WACC	5.4% - 8.9%	7.1%

WACC

JLB.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.61	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	10.40%

Tax rate	11.60%	14.50%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.50%	4.60%

After-tax WACC	5.4%	8.9%


Selected WACC	7.1%

JLB.SI'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 JLB.SI:

cost_of_equity (8.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.61) + 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.