JTIASA.KL WACC - Weighted Average Cost of Capital

The WACC of Jaya Tiasa Holdings Bhd (JTIASA.KL) is 10.4%.

The Cost of Equity of Jaya Tiasa Holdings Bhd (JTIASA.KL) is 11.70%.

The Cost of Debt of Jaya Tiasa Holdings Bhd (JTIASA.KL) is 4.45%.

	Range	Selected
Cost of equity	10.30% - 13.10%	11.70%
Tax rate	34.60% - 39.10%	36.85%
Cost of debt	4.40% - 4.50%	4.45%
WACC	9.2% - 11.6%	10.4%

WACC

JTIASA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.95	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.10%

Tax rate	34.60%	39.10%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.40%	4.50%

After-tax WACC	9.2%	11.6%


Selected WACC	10.4%

JTIASA.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 JTIASA.KL:

cost_of_equity (11.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.95) + 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.