The WACC of Jaywing PLC (JWNG.L) is 5.8%.
Range | Selected | |
Cost of equity | 17.7% - 26.0% | 21.85% |
Tax rate | 2.1% - 3.2% | 2.65% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 4.3% - 7.3% | 5.8% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 2.29 | 3.01 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 17.7% | 26.0% |
Tax rate | 2.1% | 3.2% |
Debt/Equity ratio | 32.5 | 32.5 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 4.3% | 7.3% |
Selected WACC | 5.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
JWNG.L | Jaywing PLC | 32.5 | -0.62 | -0.02 |
ALADM.PA | Adthink SA | 0.46 | 0.19 | 0.13 |
ALINV.PA | Invibes Advertising NV | 0.88 | 0.18 | 0.1 |
ARR.WA | Arteria SA | 0.28 | -0.08 | -0.06 |
CEOEM.IS | CEO Event Medya AS | 0 | 1.07 | 1.07 |
DTR.WA | Digitree Group SA | 0.12 | -0.02 | -0.02 |
HYVE.L | Hyve Group PLC | 0.33 | 0.27 | 0.2 |
IEG.MI | Italian Exhibition Group SpA | 0.43 | 0.25 | 0.18 |
MCHN.SW | MCH Group AG | 1.07 | 0.23 | 0.11 |
TC | TuanChe Ltd | 3.01 | 0.31 | 0.08 |
Low | High | |
Unlevered beta | 0.09 | 0.12 |
Relevered beta | 2.93 | 4 |
Adjusted relevered beta | 2.29 | 3.01 |
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 JWNG.L:
cost_of_equity (21.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (2.29) + 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.