2028.HK WACC - Weighted Average Cost of Capital

The WACC of Jolimark Holdings Ltd (2028.HK) is 7.1%.

The Cost of Equity of Jolimark Holdings Ltd (2028.HK) is 11.10%.

The Cost of Debt of Jolimark Holdings Ltd (2028.HK) is 6.30%.

	Range	Selected
Cost of equity	9.00% - 13.20%	11.10%
Tax rate	3.50% - 5.10%	4.30%
Cost of debt	5.60% - 7.00%	6.30%
WACC	6.1% - 8.0%	7.1%

WACC

2028.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.03	1.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	13.20%

Tax rate	3.50%	5.10%
Debt/Equity ratio	3.88	3.88
Cost of debt	5.60%	7.00%

After-tax WACC	6.1%	8.0%


Selected WACC	7.1%

2028.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 2028.HK:

cost_of_equity (11.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.03) + 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.