JAGR WACC - Weighted Average Cost of Capital
The WACC of Green Street Capital Corp (JAGR) is 3.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.7% | 6.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.8% - 3.8% | 3.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 25.66 | 25.66 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.8% | 3.8% |
| Selected WACC | 3.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JAGR | Green Street Capital Corp | 25.66 | 0.07 | 0 |
| CAPP | Capstone Financial Group Inc | 0.01 | 0.52 | 0.52 |
| HPIL | HPIL Holding | 15.83 | 0 | 0 |
| IDEA | Aeon Ventures Inc | 0.42 | -1.16 | -0.89 |
| PRPM | ProTek Capital Inc | 11.24 | 0 | 0 |
| SCGX | GTEK Industries Inc | 0 | -0.6 | -0.6 |
| SUNS | SLR Senior Investment Corp | 1.4 | 0.98 | 0.49 |
| VTNA | Vetanova Inc | 11.61 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0 |
| Relevered beta | 0 | 0.01 |
| Adjusted relevered beta | 0.33 | 0.34 |
JAGR'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 JAGR:
cost_of_equity (6.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * 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.