JYNT WACC - Weighted Average Cost of Capital
The WACC of Joint Corp (JYNT) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.2% | 7.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.1% - 7.0% | 5.55% |
| WACC | 4.5% - 6.6% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.45 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.1% | 7.0% |
| After-tax WACC | 4.5% | 6.6% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JYNT | Joint Corp | 1.15 | 1.12 | 0.61 |
| BICX | BioCorRx Inc | 0.54 | 1.21 | 0.87 |
| BKD | Brookdale Senior Living Inc | 3.4 | 0.27 | 0.08 |
| CYH | Community Health Systems Inc | 22.24 | 1.18 | 0.07 |
| DR.TO | Medical Facilities Corp | 0.51 | 0.33 | 0.24 |
| GRST | Ethema Health Corp | 1.67 | 0.11 | 0.05 |
| HCA | HCA Healthcare Inc | 0.46 | 0.33 | 0.25 |
| IMAC | IMAC Holdings Inc | 0.01 | -1 | -0.99 |
| NFH | New Frontier Health Corp | 0.19 | 0.14 | 0.12 |
| SIA.TO | Sienna Senior Living Inc | 0.61 | 0.31 | 0.21 |
| USPH | U.S. Physical Therapy Inc | 0.14 | 0.89 | 0.81 |
| Low | High | |
| Unlevered beta | 0.12 | 0.24 |
| Relevered beta | 0.18 | 0.39 |
| Adjusted relevered beta | 0.45 | 0.59 |
JYNT'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 JYNT:
cost_of_equity (7.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.45) + 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.