JUP.L
Jupiter Fund Management PLC
Price:  
76.20 
GBP
Volume:  
908,704.00
United Kingdom | Capital Markets
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JUP.L WACC - Weighted Average Cost of Capital

The WACC of Jupiter Fund Management PLC (JUP.L) is 10.3%.

The Cost of Equity of Jupiter Fund Management PLC (JUP.L) is 11.85%.
The Cost of Debt of Jupiter Fund Management PLC (JUP.L) is 4.70%.

Range Selected
Cost of equity 9.70% - 14.00% 11.85%
Tax rate 19.80% - 22.80% 21.30%
Cost of debt 4.60% - 4.80% 4.70%
WACC 8.5% - 12.0% 10.3%
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 0.96 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 14.00%
Tax rate 19.80% 22.80%
Debt/Equity ratio 0.24 0.24
Cost of debt 4.60% 4.80%
After-tax WACC 8.5% 12.0%
Selected WACC 10.3%

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 (11.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.96) + 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.