The WACC of JWW Invest SA (JWW.WA) is 11.2%.
Range | Selected | |
Cost of equity | 9.9% - 12.6% | 11.25% |
Tax rate | 11.4% - 21.5% | 16.45% |
Cost of debt | 6.2% - 21.9% | 14.05% |
WACC | 9.4% - 13.0% | 11.2% |
Category | Low | High |
Long-term bond rate | 5.5% | 6.0% |
Equity market risk premium | 6.3% | 7.3% |
Adjusted beta | 0.69 | 0.82 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.9% | 12.6% |
Tax rate | 11.4% | 21.5% |
Debt/Equity ratio | 0.11 | 0.11 |
Cost of debt | 6.2% | 21.9% |
After-tax WACC | 9.4% | 13.0% |
Selected WACC | 11.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
JWW.WA | JWW Invest SA | 0.11 | 0.19 | 0.18 |
24STOR.ST | 24Storage AB | 0.84 | 1.1 | 0.64 |
B.MI | Bastogi SpA | 1.65 | 0.86 | 0.35 |
BRAV.ST | Bravida Holding AB | 0.16 | 0.88 | 0.77 |
CAV1V.HE | Caverion Oyj | 0.23 | -0.09 | -0.08 |
EAAS.L | Eenergy Group PLC | 0.46 | 1.12 | 0.8 |
GBF.DE | Bilfinger SE | 0.12 | 1.08 | 0.98 |
GYG.L | GYG PLC | 1.1 | 1.78 | 0.91 |
HSV.L | HomeServe PLC | 0.2 | 0.47 | 0.4 |
NOVI.AS | Novisource NV | 0.04 | 0.57 | 0.55 |
Low | High | |
Unlevered beta | 0.49 | 0.69 |
Relevered beta | 0.54 | 0.73 |
Adjusted relevered beta | 0.69 | 0.82 |
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 JWW.WA:
cost_of_equity (11.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.69) + 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.