JOHAN.KL
Johan Holdings Bhd
Price:  
0.03 
MYR
Volume:  
2,000.00
Malaysia | Consumer Finance
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JOHAN.KL WACC - Weighted Average Cost of Capital

The WACC of Johan Holdings Bhd (JOHAN.KL) is 7.9%.

The Cost of Equity of Johan Holdings Bhd (JOHAN.KL) is 7.05%.
The Cost of Debt of Johan Holdings Bhd (JOHAN.KL) is 16.90%.

Range Selected
Cost of equity 6.30% - 7.80% 7.05%
Tax rate 0.60% - 1.20% 0.90%
Cost of debt 7.00% - 26.80% 16.90%
WACC 6.3% - 9.4% 7.9%
WACC

JOHAN.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.36 0.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 7.80%
Tax rate 0.60% 1.20%
Debt/Equity ratio 0.1 0.1
Cost of debt 7.00% 26.80%
After-tax WACC 6.3% 9.4%
Selected WACC 7.9%

JOHAN.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 JOHAN.KL:

cost_of_equity (7.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.36) + 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.