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Jefferies Financial Group Inc. (JEF) — WACC Analysis

WACC Breakdown

Jefferies Financial Group Inc. (JEF) has a weighted average cost of capital (WACC) of 13.3%. The cost of equity is 10.2%, derived from a beta of 1.36 and a risk-free rate of 5.0%. The after-tax cost of debt is 15.4%. The capital structure is 39.0% equity and 61.0% debt.

Interpretation

A WACC of 13.3% indicates that the market perceives Jefferies Financial Group Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare JEF's WACC of 13.3% against industry peers to gauge its relative financing costs. A beta of 1.36 reflects the stock's volatility relative to the broader market.

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VALUATION

JEF WACC: 13.35% for Jefferies Financial Group Inc.

Current inputs imply a 10.22% cost of equity and a 19.43% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Jefferies Financial Group Inc. Common Stock (JEF) WACC Results
Weighted Average Cost of Capital
13.35%
Cost of Equity
10.22%
Risk-Free Rate4.97%
Beta1.36
Market Risk Premium4.23%
Cost of Debt
15.35%
Pre-Tax Cost of Debt19.43%
Tax Rate21.00%
Tax Shield4.08%
Capital Structure
Equity: 39.03%($11.55B)
Debt: 60.97%($18.04B)
Equity Component
3.99%
39.03% × 10.22%
Debt Component
9.36%
60.97% × 15.35%

Jefferies Financial Group Inc. (JEF) WACC in context

Jefferies Financial Group Inc. (JEF) currently screens with an estimated WACC of 13.35%. That blends a 10.22% cost of equity, a 19.43% pre-tax cost of debt, and a 39.03% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What JEF WACC implies

A 13.35% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates JEF

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.36 and equity accounts for 39.03% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.