JEN.BR WACC - Weighted Average Cost of Capital
The WACC of Jensen Group NV (JEN.BR) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.3% | 7.3% |
| Tax rate | 24.9% - 26.2% | 25.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.8% - 7.6% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.57 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.3% |
| Tax rate | 24.9% | 26.2% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.8% | 7.6% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JEN.BR | Jensen Group NV | 0.16 | 0.47 | 0.42 |
| AAG.DE | Aumann AG | 0.05 | 0.4 | 0.38 |
| KLIN.SW | Klingelnberg AG | 0.37 | 0.63 | 0.49 |
| MIKN.SW | Mikron Holding AG | 0.01 | 0.67 | 0.67 |
| PVN.MI | Piovan SpA | 0.21 | 0 | 0 |
| RNO.L | Renold PLC | 0.48 | -0.19 | -0.14 |
| RSL2.DE | R Stahl AG | 0.51 | 0.46 | 0.33 |
| STGN.SW | Starrag Group Holding AG | 0.21 | 0.63 | 0.54 |
| TRI.L | Trifast PLC | 0.65 | 0.47 | 0.31 |
| XANO B.ST | XANO Industri AB | 0.37 | 0.1 | 0.08 |
| Low | High | |
| Unlevered beta | 0.32 | 0.4 |
| Relevered beta | 0.36 | 0.45 |
| Adjusted relevered beta | 0.57 | 0.63 |
JEN.BR'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 JEN.BR:
cost_of_equity (7.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.