JYSK.CO WACC - Weighted Average Cost of Capital
The WACC of Jyske Bank A/S (JYSK.CO) is 6.2%.
| Range | Selected | |
| Cost of equity | 20.2% - 42.4% | 31.3% |
| Tax rate | 22.7% - 24.3% | 23.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 3.42 | 6.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 20.2% | 42.4% |
| Tax rate | 22.7% | 24.3% |
| Debt/Equity ratio | 10.74 | 10.74 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JYSK.CO | Jyske Bank A/S | 10.74 | 0.35 | 0.04 |
| BMPS.MI | Banca Monte dei Paschi di Siena SpA | 1 | 1.46 | 0.83 |
| BPE.MI | Bper Banca SpA | 2.3 | 1.37 | 0.5 |
| ETE.AT | National Bank of Greece SA | 0.42 | 1.63 | 1.23 |
| ING.WA | ING Bank Slaski SA | 0.07 | 1.02 | 0.97 |
| LUKN.SW | Luzerner Kantonalbank AG | 4.67 | 0.28 | 0.06 |
| MBK.WA | mBank SA | 0.56 | 1.41 | 0.99 |
| PEO.WA | Bank Polska Kasa Opieki SA | 0.42 | 1.59 | 1.2 |
| SPL.WA | Santander Bank Polska SA | 0.3 | 1.28 | 1.04 |
| TCS.L | TCS Group Holding PLC | 0.17 | -0.42 | -0.37 |
| Low | High | |
| Unlevered beta | 0.7 | 0.98 |
| Relevered beta | 4.61 | 8.97 |
| Adjusted relevered beta | 3.42 | 6.34 |
JYSK.CO'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 JYSK.CO:
cost_of_equity (31.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (3.42) + 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.