JOHOTIN.KL WACC - Weighted Average Cost of Capital
The WACC of Johore Tin Bhd (JOHOTIN.KL) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.8% | 9.35% |
| Tax rate | 23.8% - 24.3% | 24.05% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 7.5% - 10.2% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.9% | 6.9% |
| Adjusted beta | 0.62 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.8% |
| Tax rate | 23.8% | 24.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 7.5% | 10.2% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JOHOTIN.KL | Johore Tin Bhd | 0.09 | 0.79 | 0.74 |
| 3A.KL | Three-A Resources Bhd | 0.01 | 0.22 | 0.22 |
| AJI.KL | Ajinomoto Malaysia Bhd | 0 | 0.79 | 0.79 |
| COCOLND.KL | Cocoaland Holdings Bhd | 0 | 0.35 | 0.35 |
| HUPSENG.KL | Hup Seng Industries Bhd | 0 | 1.1 | 1.1 |
| KAWAN.KL | Kawan Food Bhd | 0.01 | 0.61 | 0.61 |
| OCB.KL | Ocb Bhd | 0.82 | -0.04 | -0.03 |
| OFI.KL | Oriental Food Industries Holdings Bhd | 0 | 0.64 | 0.63 |
| SDS.KL | SDS Group Bhd | 0.05 | 1.03 | 0.99 |
| TECGUAN.KL | Teck Guan Perdana Bhd | 0.28 | 0.53 | 0.44 |
| Low | High | |
| Unlevered beta | 0.54 | 0.68 |
| Relevered beta | 0.43 | 0.7 |
| Adjusted relevered beta | 0.62 | 0.8 |
JOHOTIN.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 JOHOTIN.KL:
cost_of_equity (9.35%) = risk_free_rate (4.45%) + equity_risk_premium (6.40%) * adjusted_beta (0.62) + 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.