JSP.BK WACC - Weighted Average Cost of Capital
The WACC of JSP Property PCL (JSP.BK) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.7% | 6.5% |
| Tax rate | 19.8% - 21.0% | 20.4% |
| Cost of debt | 4.0% - 5.8% | 4.9% |
| WACC | 5.0% - 7.2% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.37 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.7% |
| Tax rate | 19.8% | 21.0% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 4.0% | 5.8% |
| After-tax WACC | 5.0% | 7.2% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JSP.BK | JSP Property PCL | 0.19 | 0.43 | 0.37 |
| APEX.BK | Apex Development PCL | 47.52 | -0.93 | -0.02 |
| BROCK.BK | Baan Rock Garden PCL | 0.02 | -0.42 | -0.41 |
| KC.BK | KC Property PCL | 2.35 | 1.47 | 0.51 |
| NVD.BK | Nirvana Daii PCL | 4.45 | 0.17 | 0.04 |
| POLAR.BK | Polaris Capital PCL | 0.05 | 0.98 | 0.94 |
| RML.BK | Raimon Land PCL | 3.51 | 1.2 | 0.32 |
| SAMCO.BK | Sammakorn PCL | 5.15 | 0.66 | 0.13 |
| SENA.BK | Sena Development PCL | 8.56 | 0.51 | 0.06 |
| TITLE.BK | Rhom Bho Property PCL | 0 | -0.06 | -0.06 |
| Low | High | |
| Unlevered beta | 0.05 | 0.2 |
| Relevered beta | 0.06 | 0.24 |
| Adjusted relevered beta | 0.37 | 0.49 |
JSP.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 JSP.BK:
cost_of_equity (6.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.37) + 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.