JOB
GEE Group Inc
Price:  
0.18 
USD
Volume:  
165,227.00
United States | Professional Services
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JOB WACC - Weighted Average Cost of Capital

The WACC of GEE Group Inc (JOB) is 6.8%.

The Cost of Equity of GEE Group Inc (JOB) is 6.75%.
The Cost of Debt of GEE Group Inc (JOB) is 7.00%.

Range Selected
Cost of equity 5.70% - 7.80% 6.75%
Tax rate 7.50% - 42.00% 24.75%
Cost of debt 7.00% - 7.00% 7.00%
WACC 5.7% - 7.8% 6.8%
WACC

JOB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.4 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 7.80%
Tax rate 7.50% 42.00%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 7.00%
After-tax WACC 5.7% 7.8%
Selected WACC 6.8%

JOB'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 JOB:

cost_of_equity (6.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.