1691.HK WACC - Weighted Average Cost of Capital
The WACC of JS Global Lifestyle Co Ltd (1691.HK) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.0% | 6.85% |
| Tax rate | 17.9% - 19.0% | 18.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 7.9% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.48 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.0% |
| Tax rate | 17.9% | 19.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 7.9% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1691.HK | JS Global Lifestyle Co Ltd | 0.01 | 0.58 | 0.57 |
| 000333.SZ | Midea Group Co Ltd | 0.2 | 0.46 | 0.4 |
| 000651.SZ | Gree Electric Appliances Inc of Zhuhai | 0.34 | 0.48 | 0.37 |
| 1692.HK | Town Ray Holdings Ltd | 0.1 | 0.26 | 0.24 |
| 2381.HK | SMC Electric Ltd | 0.04 | 0.14 | 0.13 |
| 464.HK | China Overseas Nuoxin International Holdings Ltd | 0.13 | 1.78 | 1.61 |
| 600690.SS | Haier Smart Home Co Ltd | 0.25 | 0.56 | 0.47 |
| 638.HK | Kin Yat Holdings Ltd | 1.21 | -0.26 | -0.13 |
| 684.HK | Allan International Holdings Ltd | 0.03 | 0.11 | 0.1 |
| 833.HK | Alltronics Holdings Ltd | 0.91 | 0.32 | 0.18 |
| Low | High | |
| Unlevered beta | 0.22 | 0.38 |
| Relevered beta | 0.22 | 0.39 |
| Adjusted relevered beta | 0.48 | 0.59 |
1691.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 1691.HK:
cost_of_equity (6.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.