1626.HK WACC - Weighted Average Cost of Capital
The WACC of Jia Yao Holdings Ltd (1626.HK) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.1% | 9.7% |
| Tax rate | 17.3% - 29.9% | 23.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.9% - 10.5% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.91 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.1% |
| Tax rate | 17.3% | 29.9% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.9% | 10.5% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1626.HK | Jia Yao Holdings Ltd | 0.09 | 0.63 | 0.59 |
| 002799.SZ | XiAn Global Printing Co Ltd | 0.17 | 0.89 | 0.79 |
| 002836.SZ | Guangdong New Grand Long Packing Co Ltd | 0.02 | 1.16 | 1.15 |
| 003003.SZ | Guangdong Tengen Industrial Group Co Ltd | 0.1 | 0.9 | 0.84 |
| 1439.HK | Mobile Internet (China) Holdings Ltd | 8.33 | 0.63 | 0.09 |
| 1629.HK | Champion Alliance International Holdings Ltd | 0.4 | 0.93 | 0.72 |
| 603022.SS | Shanghai Xintonglian Packaging Co Ltd | 0.05 | 1.08 | 1.05 |
| 603058.SS | GuiZhou YongJi Printing Co Ltd | 0.1 | 1.22 | 1.14 |
| 603499.SS | Shanghai Sunglow Packaging Technology Co Ltd | 0.09 | 1.16 | 1.09 |
| 603687.SS | Zhejiang Great Shengda Packaging Co Ltd | 0.02 | 0.97 | 0.96 |
| Low | High | |
| Unlevered beta | 0.82 | 1 |
| Relevered beta | 0.87 | 1.06 |
| Adjusted relevered beta | 0.91 | 1.04 |
1626.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 1626.HK:
cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.