2060.HK WACC - Weighted Average Cost of Capital

The WACC of Pujiang International Group Ltd (2060.HK) is 10.2%.

The Cost of Equity of Pujiang International Group Ltd (2060.HK) is 72.05%.

The Cost of Debt of Pujiang International Group Ltd (2060.HK) is 7.30%.

	Range	Selected
Cost of equity	60.20% - 83.90%	72.05%
Tax rate	14.60% - 15.80%	15.20%
Cost of debt	6.50% - 8.10%	7.30%
WACC	8.9% - 11.6%	10.2%

WACC

2060.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	9.59	11.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	60.20%	83.90%

Tax rate	14.60%	15.80%
Debt/Equity ratio	15.2	15.2
Cost of debt	6.50%	8.10%

After-tax WACC	8.9%	11.6%


Selected WACC	10.2%

2060.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 2060.HK:

cost_of_equity (72.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (9.59) + 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.