JWC.WA WACC - Weighted Average Cost of Capital

The WACC of JW Construction Holding SA (JWC.WA) is 8.5%.

The Cost of Equity of JW Construction Holding SA (JWC.WA) is 11.45%.

The Cost of Debt of JW Construction Holding SA (JWC.WA) is 6.90%.

	Range	Selected
Cost of equity	10.40% - 12.50%	11.45%
Tax rate	20.90% - 21.30%	21.10%
Cost of debt	6.80% - 7.00%	6.90%
WACC	8.0% - 9.1%	8.5%

WACC

JWC.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.57	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	12.50%

Tax rate	20.90%	21.30%
Debt/Equity ratio	0.94	0.94
Cost of debt	6.80%	7.00%

After-tax WACC	8.0%	9.1%


Selected WACC	8.5%

JWC.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 JWC.WA:

cost_of_equity (11.45%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.57) + 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.