JLG.L
John Laing Group PLC
Price:  
402.60 
GBP
Volume:  
9,168,450.00
United Kingdom | Construction & Engineering
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JLG.L WACC - Weighted Average Cost of Capital

The WACC of John Laing Group PLC (JLG.L) is 7.4%.

The Cost of Equity of John Laing Group PLC (JLG.L) is 7.55%.
The Cost of Debt of John Laing Group PLC (JLG.L) is 5.00%.

Range Selected
Cost of equity 6.30% - 8.80% 7.55%
Tax rate 0.60% - 1.00% 0.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 8.5% 7.4%
WACC

JLG.L WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 5.3% 6.3%
Adjusted beta 0.63 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.80%
Tax rate 0.60% 1.00%
Debt/Equity ratio 0.07 0.07
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 8.5%
Selected WACC 7.4%

JLG.L'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 JLG.L:

cost_of_equity (7.55%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (0.63) + 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.