JLP.L WACC - Weighted Average Cost of Capital

The WACC of Jubilee Metals Group PLC (JLP.L) is 13.4%.

The Cost of Equity of Jubilee Metals Group PLC (JLP.L) is 12.50%.

The Cost of Debt of Jubilee Metals Group PLC (JLP.L) is 23.05%.

	Range	Selected
Cost of equity	10.30% - 14.70%	12.50%
Tax rate	18.20% - 27.90%	23.05%
Cost of debt	15.80% - 30.30%	23.05%
WACC	10.8% - 16.1%	13.4%

WACC

JLP.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.05	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	14.70%

Tax rate	18.20%	27.90%
Debt/Equity ratio	0.25	0.25
Cost of debt	15.80%	30.30%

After-tax WACC	10.8%	16.1%


Selected WACC	13.4%

JLP.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 JLP.L:

cost_of_equity (12.50%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.05) + 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.