JEC.V WACC - Weighted Average Cost of Capital

The WACC of Jura Energy Corp (JEC.V) is 11.0%.

The Cost of Equity of Jura Energy Corp (JEC.V) is 20.20%.

The Cost of Debt of Jura Energy Corp (JEC.V) is 11.80%.

	Range	Selected
Cost of equity	13.90% - 26.50%	20.20%
Tax rate	13.10% - 24.50%	18.80%
Cost of debt	7.00% - 16.60%	11.80%
WACC	7.3% - 14.7%	11.0%

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	1.97	3.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	26.50%

Tax rate	13.10%	24.50%
Debt/Equity ratio	5.33	5.33
Cost of debt	7.00%	16.60%

After-tax WACC	7.3%	14.7%


Selected WACC	11.0%

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 (20.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.97) + 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.