JMT.BK WACC - Weighted Average Cost of Capital

The WACC of JMT Network Services PCL (JMT.BK) is 8.6%.

The Cost of Equity of JMT Network Services PCL (JMT.BK) is 12.90%.

The Cost of Debt of JMT Network Services PCL (JMT.BK) is 4.25%.

	Range	Selected
Cost of equity	11.50% - 14.30%	12.90%
Tax rate	14.70% - 14.90%	14.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.7% - 9.5%	8.6%

WACC

JMT.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.2	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	14.30%

Tax rate	14.70%	14.90%
Debt/Equity ratio	0.86	0.86
Cost of debt	4.00%	4.50%

After-tax WACC	7.7%	9.5%


Selected WACC	8.6%

JMT.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 JMT.BK:

cost_of_equity (12.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.2) + 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.