1862.HK WACC - Weighted Average Cost of Capital
The WACC of Jingrui Holdings Ltd (1862.HK) is 5.6%.
| Range | Selected | |
| Cost of equity | 29.0% - 218.2% | 123.6% |
| Tax rate | 6.2% - 22.6% | 14.4% |
| Cost of debt | 6.0% - 7.0% | 6.5% |
| WACC | 5.6% - 5.7% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 4.37 | 30.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 29.0% | 218.2% |
| Tax rate | 6.2% | 22.6% |
| Debt/Equity ratio | 863.6 | 863.6 |
| Cost of debt | 6.0% | 7.0% |
| After-tax WACC | 5.6% | 5.7% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1862.HK | Jingrui Holdings Ltd | 863.6 | 1.44 | 0 |
| 000736.SZ | CCCG Real Estate Corp Ltd | 11.73 | 1.42 | 0.12 |
| 1107.HK | Modern Land (China) Co Ltd | 409.05 | 0.21 | 0 |
| 1902.HK | Yincheng International Holding Co Ltd | 176.95 | 0.42 | 0 |
| 2019.HK | Dexin China Holdings Company Ltd | 113.41 | 1.52 | 0.01 |
| 2329.HK | Glory Land Company Ltd | 146.18 | 0.81 | 0.01 |
| 600094.SS | Greattown Holdings Ltd | 0.43 | 1.16 | 0.83 |
| 600266.SS | Beijing Urban Construction Investment & Development Co Ltd | 5.17 | 1.3 | 0.22 |
| 600708.SS | Bright Real Estate Group Co Ltd | 5.16 | 1.23 | 0.21 |
| 6111.HK | DaFa Properties Group Ltd | 178.95 | 1.44 | 0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.06 |
| Relevered beta | 6.03 | 45.33 |
| Adjusted relevered beta | 4.37 | 30.7 |
1862.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 1862.HK:
cost_of_equity (123.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (4.37) + 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.