JRV.AX
Jervois Mining Ltd
Price:  
0.01 
AUD
Volume:  
3,935,029
Australia | Metals & Mining

JRV.AX WACC - Weighted Average Cost of Capital

The WACC of Jervois Mining Ltd (JRV.AX) is 6.4%.

The Cost of Equity of Jervois Mining Ltd (JRV.AX) is 11.75%.
The Cost of Debt of Jervois Mining Ltd (JRV.AX) is 5.6%.

RangeSelected
Cost of equity10.1% - 13.4%11.75%
Tax rate0.9% - 2.2%1.55%
Cost of debt4.0% - 7.2%5.6%
WACC4.8% - 7.9%6.4%
WACC

JRV.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta1.191.38
Additional risk adjustments0.0%0.5%
Cost of equity10.1%13.4%
Tax rate0.9%2.2%
Debt/Equity ratio
6.236.23
Cost of debt4.0%7.2%
After-tax WACC4.8%7.9%
Selected WACC6.4%

JRV.AX'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 JRV.AX:

cost_of_equity (11.75%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.19) + 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.