JCDAF WACC - Weighted Average Cost of Capital
The WACC of Jacada Ltd (JCDAF) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.2% - 11.1% | 8.15% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 7.4% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.35 | 1.24 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.2% | 11.1% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 7.4% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JCDAF | Jacada Ltd | 0.83 | 0.25 | 0.16 |
| CMFV | Comf5 International Inc | 1346.63 | 0 | 0 |
| CXDO | Crexendo Inc | 0 | 1.53 | 1.53 |
| GAWK | Gawk Inc | 5468.96 | 0 | 0 |
| IWBB | IWeb Inc | 0 | 1.07 | 1.07 |
| LSYN | Liberated Syndication Inc | 0.05 | 0.76 | 0.73 |
| MTLO.V | Martello Technologies Group Inc | 1.76 | 1.28 | 0.56 |
| URL.CN | NameSilo Technologies Corp | 0.04 | 0.86 | 0.84 |
| VCTL | Rainmaker Systems Inc | 861.78 | 44.67 | 0.07 |
| VNET | 21Vianet Group Inc | 1.07 | 1.43 | 0.8 |
| Low | High | |
| Unlevered beta | 0.4 | 0.76 |
| Relevered beta | 0.03 | 1.36 |
| Adjusted relevered beta | 0.35 | 1.24 |
JCDAF'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 JCDAF:
cost_of_equity (8.15%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.35) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.