JTC.L WACC - Weighted Average Cost of Capital
The WACC of Jtc PLC (JTC.L) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.6% | 7.9% |
| Tax rate | 3.8% - 5.0% | 4.4% |
| Cost of debt | 4.8% - 4.9% | 4.85% |
| WACC | 5.9% - 8.7% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.37 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.6% |
| Tax rate | 3.8% | 5.0% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.8% | 4.9% |
| After-tax WACC | 5.9% | 8.7% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JTC.L | Jtc PLC | 0.23 | 1.27 | 1.04 |
| AFM.L | Alpha Financial Markets Consulting PLC | 0 | 1.52 | 1.52 |
| ALK.MI | Alkemy SpA | 0.39 | 0.06 | 0.05 |
| DOV1V.HE | Dovre Group Oyj | 0.48 | -0.1 | -0.07 |
| ENENTO.HE | Enento Group Plc | 0.39 | 0.37 | 0.27 |
| K3C.L | K3 Capital Group PLC | 0.02 | 1.85 | 1.81 |
| KGH.L | Knights Group Holdings PLC | 0.54 | 0.05 | 0.03 |
| PNA1V.HE | Panostaja Oyj | 2.47 | 0.16 | 0.05 |
| RBGP.L | RBG Holdings PLC | 32.67 | 1.6 | 0.05 |
| TNOM.HE | Talenom Oyj | 0.53 | 0.93 | 0.61 |
| Low | High | |
| Unlevered beta | 0.05 | 0.41 |
| Relevered beta | 0.06 | 0.49 |
| Adjusted relevered beta | 0.37 | 0.66 |
JTC.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 JTC.L:
cost_of_equity (7.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.