JOUL.L
Joules Group PLC
Price:  
9.22 
GBP
Volume:  
2,871,710
United Kingdom | Textiles, Apparel & Luxury Goods

JOUL.L WACC - Weighted Average Cost of Capital

The WACC of Joules Group PLC (JOUL.L) is 4.4%.

The Cost of Equity of Joules Group PLC (JOUL.L) is 8.55%.
The Cost of Debt of Joules Group PLC (JOUL.L) is 4.6%.

RangeSelected
Cost of equity7.3% - 9.8%8.55%
Tax rate22.2% - 25.3%23.75%
Cost of debt4.0% - 5.2%4.6%
WACC3.9% - 5.0%4.4%
WACC

JOUL.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.560.7
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.8%
Tax rate22.2%25.3%
Debt/Equity ratio
4.474.47
Cost of debt4.0%5.2%
After-tax WACC3.9%5.0%
Selected WACC4.4%

JOUL.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 JOUL.L:

cost_of_equity (8.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.