JARA.L WACC - Weighted Average Cost of Capital
The WACC of JPMorgan Global Core Real Assets Ltd (JARA.L) is 8.2%.
| Range | Selected | |
| Cost of equity | 9.4% - 13.9% | 11.65% |
| Tax rate | 2.8% - 3.8% | 3.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.1% - 9.4% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.9 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 13.9% |
| Tax rate | 2.8% | 3.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.1% | 9.4% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JARA.L | JPMorgan Global Core Real Assets Ltd | 0.94 | 0.5 | 0.26 |
| A7A.DE | Finlab AG | 0.15 | 0.83 | 0.73 |
| ALPN.SW | Alpine Select AG | 0.01 | 0.36 | 0.36 |
| BPM.L | B.P. Marsh & Partners PLC | 0 | 0.41 | 0.41 |
| EVLI.HE | Evli Pankki Oyj | 0.22 | 0.54 | 0.45 |
| GOZDE.IS | Gozde Girisim Sermayesi Yatirim Ortakligi AS | 0.06 | 1.43 | 1.35 |
| HPBK.DE | Heliad Equity Partners GmbH & Co KGaA | 0.24 | 0.88 | 0.72 |
| ISGSY.IS | Is Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.8 | 0.8 |
| MCI.WA | MCI Capital SA | 0.22 | 0.4 | 0.33 |
| MERC.L | Mercia Asset Management PLC | 0.01 | 1.34 | 1.34 |
| NEXTS.PA | Nextstage SCA | 0.08 | 0.29 | 0.27 |
| Low | High | |
| Unlevered beta | 0.41 | 0.72 |
| Relevered beta | 0.85 | 1.42 |
| Adjusted relevered beta | 0.9 | 1.28 |
JARA.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 JARA.L:
cost_of_equity (11.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.9) + 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.