JTC.L
Jtc PLC
Price:  
870.00 
GBP
Volume:  
424,843.00
Jersey | Capital Markets
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JTC.L WACC - Weighted Average Cost of Capital

The WACC of Jtc PLC (JTC.L) is 7.2%.

The Cost of Equity of Jtc PLC (JTC.L) is 7.80%.
The Cost of Debt of Jtc PLC (JTC.L) is 4.85%.

Range Selected
Cost of equity 6.20% - 9.40% 7.80%
Tax rate 3.80% - 5.00% 4.40%
Cost of debt 4.80% - 4.90% 4.85%
WACC 5.9% - 8.5% 7.2%
WACC

JTC.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.37 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 9.40%
Tax rate 3.80% 5.00%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.80% 4.90%
After-tax WACC 5.9% 8.5%
Selected WACC 7.2%

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 (7.80%) = 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.