JUP.L WACC - Weighted Average Cost of Capital

The WACC of Jupiter Fund Management PLC (JUP.L) is 10.1%.

The Cost of Equity of Jupiter Fund Management PLC (JUP.L) is 10.40%.

The Cost of Debt of Jupiter Fund Management PLC (JUP.L) is 4.80%.

	Range	Selected
Cost of equity	9.20% - 11.60%	10.40%
Tax rate	21.80% - 24.80%	23.30%
Cost of debt	4.60% - 5.00%	4.80%
WACC	8.9% - 11.2%	10.1%

WACC

JUP.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.86	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	11.60%

Tax rate	21.80%	24.80%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.60%	5.00%

After-tax WACC	8.9%	11.2%


Selected WACC	10.1%

JUP.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 JUP.L:

cost_of_equity (10.40%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.