JMART.BK WACC - Weighted Average Cost of Capital

The WACC of Jay Mart PCL (JMART.BK) is 8.1%.

The Cost of Equity of Jay Mart PCL (JMART.BK) is 9.85%.

The Cost of Debt of Jay Mart PCL (JMART.BK) is 9.25%.

	Range	Selected
Cost of equity	7.00% - 12.70%	9.85%
Tax rate	11.60% - 23.70%	17.65%
Cost of debt	4.20% - 14.30%	9.25%
WACC	4.7% - 11.5%	8.1%

WACC

JMART.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.59	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	12.70%

Tax rate	11.60%	23.70%
Debt/Equity ratio	2.28	2.28
Cost of debt	4.20%	14.30%

After-tax WACC	4.7%	11.5%


Selected WACC	8.1%

JMART.BK'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 JMART.BK:

cost_of_equity (9.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + 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.