1935.HK WACC - Weighted Average Cost of Capital

The WACC of JH Educational Technology INC (1935.HK) is 8.4%.

The Cost of Equity of JH Educational Technology INC (1935.HK) is 8.40%.

The Cost of Debt of JH Educational Technology INC (1935.HK) is 19.55%.

	Range	Selected
Cost of equity	6.60% - 10.20%	8.40%
Tax rate	0.40% - 0.50%	0.45%
Cost of debt	4.00% - 35.10%	19.55%
WACC	6.6% - 10.2%	8.4%

WACC

1935.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.62	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.20%

Tax rate	0.40%	0.50%
Debt/Equity ratio	0	0
Cost of debt	4.00%	35.10%

After-tax WACC	6.6%	10.2%


Selected WACC	8.4%

1935.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 1935.HK:

cost_of_equity (8.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.