1459.HK WACC - Weighted Average Cost of Capital

The WACC of Jujiang Construction Group Co Ltd (1459.HK) is 10.2%.

The Cost of Equity of Jujiang Construction Group Co Ltd (1459.HK) is 11.65%.

The Cost of Debt of Jujiang Construction Group Co Ltd (1459.HK) is 11.45%.

	Range	Selected
Cost of equity	7.60% - 15.70%	11.65%
Tax rate	13.60% - 16.60%	15.10%
Cost of debt	8.30% - 14.60%	11.45%
WACC	7.3% - 13.1%	10.2%

WACC

1459.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.79	1.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	15.70%

Tax rate	13.60%	16.60%
Debt/Equity ratio	2.87	2.87
Cost of debt	8.30%	14.60%

After-tax WACC	7.3%	13.1%


Selected WACC	10.2%

1459.HK'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 1459.HK:

cost_of_equity (11.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.79) + 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.