2728.HK WACC - Weighted Average Cost of Capital
The WACC of Jintai Energy Holdings Ltd (2728.HK) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.7% | 7% |
| Tax rate | 5.5% - 23.4% | 14.45% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.4% - 6.8% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.4 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.7% |
| Tax rate | 5.5% | 23.4% |
| Debt/Equity ratio | 1.41 | 1.41 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.4% | 6.8% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2728.HK | Jintai Energy Holdings Ltd | 1.41 | 0.53 | 0.23 |
| 1621.HK | Vico International Holdings Ltd | 0.42 | 0.48 | 0.34 |
| 332.HK | Yuan Heng Gas Holdings Ltd | 10.39 | 0.25 | 0.02 |
| 342.HK | Newocean Energy Holdings Ltd | 117.89 | 0.39 | 0 |
| 8250.HK | Silk Road Energy Services Group Ltd | 0.03 | -0.27 | -0.26 |
| 8631.HK | Sun Kong Holdings Ltd | 0.1 | 0.28 | 0.26 |
| 92.HK | Champion Technology Holdings Ltd | 0.01 | 0.06 | 0.06 |
| 931.HK | China LNG Group Ltd | 0.54 | 0.53 | 0.35 |
| 934.HK | Sinopec Kantons Holdings Ltd | 0 | 0.38 | 0.38 |
| Y35.SI | AnAn International Ltd | 6.92 | -1.2 | -0.16 |
| Low | High | |
| Unlevered beta | 0.05 | 0.24 |
| Relevered beta | 0.1 | 0.54 |
| Adjusted relevered beta | 0.4 | 0.69 |
2728.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 2728.HK:
cost_of_equity (7.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + 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.