JPmorgan US Smaller Companies Investment Trust PLC (JUSC.L) WACC Analysis

As of December 15, 2025, JPmorgan US Smaller Companies Investment Trust PLC (JUSC.L) carries a Weighted Average Cost of Capital (WACC) of 11.1%. WACC reflects the blended rate JPmorgan US Smaller Companies Investment Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 10.6%, the cost of debt is 5.1%, and the effective tax rate is 1.5%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 1.1 – 1.13
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.11

What It Means for Investors

With a selected WACC of 11.1%, JPmorgan US Smaller Companies Investment Trust PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.