JSE.L WACC - Weighted Average Cost of Capital

The WACC of Jadestone Energy Inc (JSE.L) is 13.6%.

The Cost of Equity of Jadestone Energy Inc (JSE.L) is 12.15%.

The Cost of Debt of Jadestone Energy Inc (JSE.L) is 22.95%.

	Range	Selected
Cost of equity	10.50% - 13.80%	12.15%
Tax rate	8.80% - 40.90%	24.85%
Cost of debt	7.60% - 38.30%	22.95%
WACC	8.5% - 18.8%	13.6%

WACC

JSE.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.09	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.80%

Tax rate	8.80%	40.90%
Debt/Equity ratio	1.27	1.27
Cost of debt	7.60%	38.30%

After-tax WACC	8.5%	18.8%


Selected WACC	13.6%

JSE.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 JSE.L:

cost_of_equity (12.15%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.09) + 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.