JIN.AX WACC - Weighted Average Cost of Capital
The WACC of Jumbo Interactive Ltd (JIN.AX) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.6% | 7.4% |
| Tax rate | 31.0% - 31.4% | 31.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.1% - 8.5% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.42 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.6% |
| Tax rate | 31.0% | 31.4% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.1% | 8.5% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JIN.AX | Jumbo Interactive Ltd | 0 | 0.82 | 0.81 |
| 114090.KS | Grand Korea Leisure Co Ltd | 0.08 | 0.08 | 0.08 |
| AGI.AX | Ainsworth Game Technology Ltd | 0.06 | 0.12 | 0.12 |
| ALL.AX | Aristocrat Leisure Ltd | 0.06 | 1.22 | 1.18 |
| AQS.AX | Aquis Entertainment Ltd | 0.78 | 0.26 | 0.17 |
| BET.AX | Betmakers Technology Group Ltd | 0.03 | 0.89 | 0.87 |
| PBH.AX | Pointsbet Holdings Ltd | 0.01 | -0.02 | -0.02 |
| SGR.AX | Star Entertainment Group Ltd | 0.96 | 0.2 | 0.12 |
| TAH.AX | Tabcorp Holdings Ltd | 0.72 | 1.01 | 0.68 |
| VVA.AX | Viva Leisure Ltd | 2.55 | 0.39 | 0.14 |
| Low | High | |
| Unlevered beta | 0.13 | 0.37 |
| Relevered beta | 0.13 | 0.37 |
| Adjusted relevered beta | 0.42 | 0.58 |
JIN.AX'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 JIN.AX:
cost_of_equity (7.40%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.