JSW.WA WACC - Weighted Average Cost of Capital

The WACC of Jastrzebska Spolka Weglowa SA (JSW.WA) is 7.4%.

The Cost of Equity of Jastrzebska Spolka Weglowa SA (JSW.WA) is 9.95%.

The Cost of Debt of Jastrzebska Spolka Weglowa SA (JSW.WA) is 5.50%.

	Range	Selected
Cost of equity	8.40% - 11.50%	9.95%
Tax rate	18.10% - 18.70%	18.40%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.0% - 8.7%	7.4%

WACC

JSW.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.46	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	11.50%

Tax rate	18.10%	18.70%
Debt/Equity ratio	0.9	0.9
Cost of debt	4.00%	7.00%

After-tax WACC	6.0%	8.7%


Selected WACC	7.4%

JSW.WA'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 JSW.WA:

cost_of_equity (9.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.46) + 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.