JWW.WA WACC - Weighted Average Cost of Capital

The WACC of JWW Invest SA (JWW.WA) is 11.1%.

The Cost of Equity of JWW Invest SA (JWW.WA) is 11.10%.

The Cost of Debt of JWW Invest SA (JWW.WA) is 15.55%.

	Range	Selected
Cost of equity	10.10% - 12.10%	11.10%
Tax rate	19.30% - 26.80%	23.05%
Cost of debt	6.10% - 25.00%	15.55%
WACC	9.5% - 12.8%	11.1%

WACC

JWW.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.72	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.10%

Tax rate	19.30%	26.80%
Debt/Equity ratio	0.12	0.12
Cost of debt	6.10%	25.00%

After-tax WACC	9.5%	12.8%


Selected WACC	11.1%

JWW.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 JWW.WA:

cost_of_equity (11.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.72) + 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.