GJCU
Gj Culture Group Us Inc
Price:  
0.9 
USD
Volume:  
100
United States | Educational Services

GJCU WACC - Weighted Average Cost of Capital

The WACC of Gj Culture Group Us Inc (GJCU) is 5.1%.

The Cost of Equity of Gj Culture Group Us Inc (GJCU) is 6.6%.
The Cost of Debt of Gj Culture Group Us Inc (GJCU) is 5%.

RangeSelected
Cost of equity5.8% - 7.4%6.6%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC4.8% - 5.5%5.1%
WACC

GJCU WACC calculation

CategoryLowHigh
Long-term bond rate4.2%4.7%
Equity market risk premium5.0%6.0%
Adjusted beta0.330.37
Additional risk adjustments0.0%0.5%
Cost of equity5.8%7.4%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.8%5.5%
Selected WACC5.1%

GJCU'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 GJCU:

cost_of_equity (6.60%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.33) + 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.