JMART.BK WACC - Weighted Average Cost of Capital

The WACC of Jay Mart PCL (JMART.BK) is 6.4%.

The Cost of Equity of Jay Mart PCL (JMART.BK) is 9.30%.

The Cost of Debt of Jay Mart PCL (JMART.BK) is 5.90%.

	Range	Selected
Cost of equity	7.30% - 11.30%	9.30%
Tax rate	11.60% - 13.40%	12.50%
Cost of debt	4.00% - 7.80%	5.90%
WACC	4.7% - 8.1%	6.4%

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	0.64	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	11.30%

Tax rate	11.60%	13.40%
Debt/Equity ratio	2.26	2.26
Cost of debt	4.00%	7.80%

After-tax WACC	4.7%	8.1%


Selected WACC	6.4%

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 (9.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.64) + 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.