1951.HK WACC - Weighted Average Cost of Capital

The WACC of Jinxin Fertility Group Ltd (1951.HK) is 10.3%.

The Cost of Equity of Jinxin Fertility Group Ltd (1951.HK) is 12.65%.

The Cost of Debt of Jinxin Fertility Group Ltd (1951.HK) is 5.55%.

	Range	Selected
Cost of equity	11.00% - 14.30%	12.65%
Tax rate	24.60% - 25.30%	24.95%
Cost of debt	4.60% - 6.50%	5.55%
WACC	9.0% - 11.7%	10.3%

WACC

1951.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.36	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	14.30%

Tax rate	24.60%	25.30%
Debt/Equity ratio	0.37	0.37
Cost of debt	4.60%	6.50%

After-tax WACC	9.0%	11.7%


Selected WACC	10.3%

1951.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 1951.HK:

cost_of_equity (12.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.36) + 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.