The WACC of GEE Group Inc (JOB) is 7.4%.
Range | Selected | |
Cost of equity | 6.5% - 8.4% | 7.45% |
Tax rate | 7.5% - 42.0% | 24.75% |
Cost of debt | 7.0% - 7.0% | 7% |
WACC | 6.5% - 8.3% | 7.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.58 | 0.63 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.5% | 8.4% |
Tax rate | 7.5% | 42.0% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 7.0% | 7.0% |
After-tax WACC | 6.5% | 8.3% |
Selected WACC | 7.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
JOB | GEE Group Inc | 0.01 | 0.51 | 0.5 |
BGSF | BGSF Inc | 0.66 | 0.59 | 0.37 |
CWL.TO | Caldwell Partners International Inc | 0.27 | -0.61 | -0.49 |
DLHC | DLH Holdings Corp | 1.89 | 1.41 | 0.52 |
HQI | Hirequest Inc | 0.05 | 0.45 | 0.43 |
KELYA | Kelly Services Inc | 0.59 | 0.56 | 0.37 |
KFRC | Kforce Inc | 0.04 | 0.47 | 0.45 |
MAN | ManpowerGroup Inc | 0.51 | 0.89 | 0.61 |
STJO | St Joseph Inc | 0.05 | -0.87 | -0.84 |
RTC.L | RTC Group PLC | 0.19 | 0.29 | 0.24 |
Low | High | |
Unlevered beta | 0.37 | 0.44 |
Relevered beta | 0.37 | 0.45 |
Adjusted relevered beta | 0.58 | 0.63 |
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 JOB:
cost_of_equity (7.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.58) + 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.