The WACC of Joules Group PLC (JOUL.L) is 4.4%.
Range | Selected | |
Cost of equity | 7.3% - 9.8% | 8.55% |
Tax rate | 22.2% - 25.3% | 23.75% |
Cost of debt | 4.0% - 5.2% | 4.6% |
WACC | 3.9% - 5.0% | 4.4% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.56 | 0.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.3% | 9.8% |
Tax rate | 22.2% | 25.3% |
Debt/Equity ratio | 4.47 | 4.47 |
Cost of debt | 4.0% | 5.2% |
After-tax WACC | 3.9% | 5.0% |
Selected WACC | 4.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
JOUL.L | Joules Group PLC | 4.47 | 2.82 | 0.63 |
AEF.MI | Aeffe SpA | 2.7 | 0.55 | 0.18 |
CSP.MI | CSP International Fashion Group SpA | 1.61 | 0.04 | 0.02 |
EAH.WA | Esotiq & Henderson SA | 0.41 | -0.03 | -0.02 |
ITM.WA | Interma Trade SA | 1.25 | -0.09 | -0.05 |
MAVI.IS | Mavi Giyim Sanayi ve Ticaret AS | 0.56 | 1.43 | 0.99 |
MUL.L | Mulberry Group PLC | 1.41 | 0.17 | 0.08 |
PQ.MI | Piquadro SpA | 0.7 | 0.1 | 0.07 |
SOL.WA | Solar Company SA | 7.7 | 0.6 | 0.09 |
VAN.BR | Van de Velde NV | 0.03 | 0.68 | 0.67 |
VRG.WA | VRG SA | 0.33 | 0.29 | 0.23 |
Low | High | |
Unlevered beta | 0.08 | 0.18 |
Relevered beta | 0.34 | 0.55 |
Adjusted relevered beta | 0.56 | 0.7 |
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.