2633.HK
Jacobson Pharma Corporation Ltd
Price:  
1.21 
HKD
Volume:  
4,590,000
Hong Kong | Pharmaceuticals

2633.HK WACC - Weighted Average Cost of Capital

The WACC of Jacobson Pharma Corporation Ltd (2633.HK) is 7.3%.

The Cost of Equity of Jacobson Pharma Corporation Ltd (2633.HK) is 8.45%.
The Cost of Debt of Jacobson Pharma Corporation Ltd (2633.HK) is 4.25%.

RangeSelected
Cost of equity6.4% - 10.5%8.45%
Tax rate17.3% - 17.5%17.4%
Cost of debt4.0% - 4.5%4.25%
WACC5.7% - 8.9%7.3%
WACC

2633.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.590.95
Additional risk adjustments0.0%0.5%
Cost of equity6.4%10.5%
Tax rate17.3%17.5%
Debt/Equity ratio
0.310.31
Cost of debt4.0%4.5%
After-tax WACC5.7%8.9%
Selected WACC7.3%

2633.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 2633.HK:

cost_of_equity (8.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.