JEC.V WACC - Weighted Average Cost of Capital

The WACC of Jura Energy Corp (JEC.V) is 11.9%.

The Cost of Equity of Jura Energy Corp (JEC.V) is 22.40%.

The Cost of Debt of Jura Energy Corp (JEC.V) is 10.75%.

	Range	Selected
Cost of equity	15.30% - 29.50%	22.40%
Tax rate	2.30% - 10.00%	6.15%
Cost of debt	7.00% - 14.50%	10.75%
WACC	8.2% - 15.7%	11.9%

WACC

JEC.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.24	4.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.30%	29.50%

Tax rate	2.30%	10.00%
Debt/Equity ratio	5.34	5.34
Cost of debt	7.00%	14.50%

After-tax WACC	8.2%	15.7%


Selected WACC	11.9%

JEC.V'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 JEC.V:

cost_of_equity (22.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (2.24) + 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.