JSDA
Jones Soda Co
Price:  
0.21 
USD
Volume:  
111,080.00
United States | Beverages
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JSDA WACC - Weighted Average Cost of Capital

The WACC of Jones Soda Co (JSDA) is 6.4%.

The Cost of Equity of Jones Soda Co (JSDA) is 6.45%.
The Cost of Debt of Jones Soda Co (JSDA) is 7.00%.

Range Selected
Cost of equity 5.60% - 7.30% 6.45%
Tax rate 0.60% - 0.80% 0.70%
Cost of debt 7.00% - 7.00% 7.00%
WACC 5.6% - 7.3% 6.4%
WACC

JSDA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.37 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 7.30%
Tax rate 0.60% 0.80%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 7.00%
After-tax WACC 5.6% 7.3%
Selected WACC 6.4%

JSDA'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 JSDA:

cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.