STJO WACC - Weighted Average Cost of Capital
The WACC of St Joseph Inc (STJO) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.3% | 7.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.6% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.41 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.6% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| STJO | St Joseph Inc | 0.17 | -1.09 | -0.97 |
| BGSF | BGSF Inc | 1.21 | 0.34 | 0.18 |
| CTPR | CTPartners Executive Search Inc | 1.1 | 0.02 | 0.01 |
| CWL.TO | Caldwell Partners International Inc | 0.31 | -0.6 | -0.49 |
| HQI | Hirequest Inc | 0.05 | 0.43 | 0.42 |
| JOB | GEE Group Inc | 0.01 | 0.53 | 0.53 |
| KFRC | Kforce Inc | 0.04 | 0.35 | 0.33 |
| KFY | Korn Ferry | 0.12 | 1.02 | 0.94 |
| TNET | TriNet Group Inc | 0.25 | 0.9 | 0.76 |
| Low | High | |
| Unlevered beta | 0.21 | 0.4 |
| Relevered beta | 0.12 | 0.42 |
| Adjusted relevered beta | 0.41 | 0.61 |
STJO'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 STJO:
cost_of_equity (7.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.41) + 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.