002530.SZ WACC - Weighted Average Cost of Capital

The WACC of JC Finance & Tax Interconnect Holdings Ltd (002530.SZ) is 9.4%.

The Cost of Equity of JC Finance & Tax Interconnect Holdings Ltd (002530.SZ) is 9.65%.

The Cost of Debt of JC Finance & Tax Interconnect Holdings Ltd (002530.SZ) is 5.00%.

	Range	Selected
Cost of equity	8.40% - 10.90%	9.65%
Tax rate	3.80% - 10.90%	7.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.3% - 10.6%	9.4%

WACC

002530.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.94	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.90%

Tax rate	3.80%	10.90%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.00%	5.00%

After-tax WACC	8.3%	10.6%


Selected WACC	9.4%

002530.SZ'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 002530.SZ:

cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.