2768.HK WACC - Weighted Average Cost of Capital

The WACC of Jiayuan International Group Ltd (2768.HK) is 6.0%.

The Cost of Equity of Jiayuan International Group Ltd (2768.HK) is 21.75%.

The Cost of Debt of Jiayuan International Group Ltd (2768.HK) is 9.35%.

	Range	Selected
Cost of equity	14.10% - 29.40%	21.75%
Tax rate	42.80% - 45.00%	43.90%
Cost of debt	8.10% - 10.60%	9.35%
WACC	5.1% - 6.9%	6.0%

WACC

2768.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.88	3.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	29.40%

Tax rate	42.80%	45.00%
Debt/Equity ratio	20.61	20.61
Cost of debt	8.10%	10.60%

After-tax WACC	5.1%	6.9%


Selected WACC	6.0%

2768.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 2768.HK:

cost_of_equity (21.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.88) + 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.