JADE.L WACC - Weighted Average Cost of Capital
The WACC of Jade Road Investments Ltd (JADE.L) is 9.6%.
| Range | Selected | |
| Cost of equity | 10.4% - 15.6% | 13% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 7.6% - 15.0% | 11.3% |
| WACC | 6.7% - 12.6% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.08 | 1.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 15.6% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 6.82 | 6.82 |
| Cost of debt | 7.6% | 15.0% |
| After-tax WACC | 6.7% | 12.6% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JADE.L | Jade Road Investments Ltd | 6.82 | 1.73 | 0.26 |
| ADV.WA | Adiuvo Investments SA | 1.23 | -0.55 | -0.27 |
| ALTUR.PA | Altur Investissement SCA | 0 | 0.43 | 0.43 |
| BRSD.L | Brandshield Systems PLC | 0.23 | -0.8 | -0.67 |
| CLP.L | Clear Leisure PLC | 0.33 | 1.97 | 1.55 |
| DM.MI | Digital Magics SpA | 0.14 | 0.2 | 0.18 |
| EFF.DE | Deutsche Effecten und Wechsel Beteiligungsgesellschaft AG | 0.6 | 0.48 | 0.32 |
| FLEXD.LS | Flexdeal SIMFE SA | 0.08 | -0.07 | -0.06 |
| PIRI.L | Pires Investments PLC | 0.72 | 0.51 | 0.32 |
| VTI.WA | Venture Inc SA | 0 | 1.16 | 1.15 |
| Low | High | |
| Unlevered beta | 0.23 | 0.32 |
| Relevered beta | 1.12 | 1.78 |
| Adjusted relevered beta | 1.08 | 1.52 |
JADE.L'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 JADE.L:
cost_of_equity (13.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.08) + 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.