The WACC of Jacques Bogart SA (JBOG.PA) is 6.5%.
| Range | Selected | |
| Cost of equity | 15.60% - 26.40% | 21.00% |
| Tax rate | 13.50% - 35.30% | 24.40% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 6.1% - 6.8% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 2.17 | 3.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.60% | 26.40% |
| Tax rate | 13.50% | 35.30% |
| Debt/Equity ratio | 5.44 | 5.44 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 6.1% | 6.8% |
| Selected WACC | 6.5% | |
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 JBOG.PA:
cost_of_equity (21.00%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (2.17) + 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.