2231.HK WACC - Weighted Average Cost of Capital

The WACC of JY Grandmark Holdings Ltd (2231.HK) is 8.9%.

The Cost of Equity of JY Grandmark Holdings Ltd (2231.HK) is 212.05%.

The Cost of Debt of JY Grandmark Holdings Ltd (2231.HK) is 8.90%.

	Range	Selected
Cost of equity	170.50% - 253.60%	212.05%
Tax rate	29.00% - 41.50%	35.25%
Cost of debt	6.40% - 11.40%	8.90%
WACC	7.2% - 10.6%	8.9%

WACC

2231.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	28.03	35.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	170.50%	253.60%

Tax rate	29.00%	41.50%
Debt/Equity ratio	62.18	62.18
Cost of debt	6.40%	11.40%

After-tax WACC	7.2%	10.6%


Selected WACC	8.9%

2231.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 2231.HK:

cost_of_equity (212.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (28.03) + 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.