JWEL.TO WACC - Weighted Average Cost of Capital

The WACC of Jamieson Wellness Inc (JWEL.TO) is 6.6%.

The Cost of Equity of Jamieson Wellness Inc (JWEL.TO) is 7.60%.

The Cost of Debt of Jamieson Wellness Inc (JWEL.TO) is 4.65%.

	Range	Selected
Cost of equity	6.30% - 8.90%	7.60%
Tax rate	26.80% - 28.30%	27.55%
Cost of debt	4.40% - 4.90%	4.65%
WACC	5.5% - 7.6%	6.6%

WACC

JWEL.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.61	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.90%

Tax rate	26.80%	28.30%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.40%	4.90%

After-tax WACC	5.5%	7.6%


Selected WACC	6.6%

JWEL.TO'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 JWEL.TO:

cost_of_equity (7.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.61) + 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.