JYSK.CO
Jyske Bank A/S
Price:  
616.50 
DKK
Volume:  
70,406.00
Denmark | Banks
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JYSK.CO WACC - Weighted Average Cost of Capital

The WACC of Jyske Bank A/S (JYSK.CO) is 6.2%.

The Cost of Equity of Jyske Bank A/S (JYSK.CO) is 33.15%.
The Cost of Debt of Jyske Bank A/S (JYSK.CO) is 5.00%.

Range Selected
Cost of equity 21.70% - 44.60% 33.15%
Tax rate 22.70% - 24.30% 23.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 7.2% 6.2%
WACC

JYSK.CO WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 3.73 6.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 21.70% 44.60%
Tax rate 22.70% 24.30%
Debt/Equity ratio 11.12 11.12
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 7.2%
Selected WACC 6.2%

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 (33.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (3.73) + 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.