2231.HK WACC - Weighted Average Cost of Capital

The WACC of JY Grandmark Holdings Ltd (2231.HK) is 5.5%.

The Cost of Equity of JY Grandmark Holdings Ltd (2231.HK) is 223.00%.

The Cost of Debt of JY Grandmark Holdings Ltd (2231.HK) is 5.75%.

	Range	Selected
Cost of equity	135.40% - 310.60%	223.00%
Tax rate	11.30% - 26.60%	18.95%
Cost of debt	4.50% - 7.00%	5.75%
WACC	4.5% - 6.5%	5.5%

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	22.16	43.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	135.40%	310.60%

Tax rate	11.30%	26.60%
Debt/Equity ratio	228.32	228.32
Cost of debt	4.50%	7.00%

After-tax WACC	4.5%	6.5%


Selected WACC	5.5%

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 (223.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (22.16) + 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.