300684.SZ WACC - Weighted Average Cost of Capital

The WACC of Jones Tech PLC (300684.SZ) is 12.4%.

The Cost of Equity of Jones Tech PLC (300684.SZ) is 12.40%.

The Cost of Debt of Jones Tech PLC (300684.SZ) is 5.00%.

	Range	Selected
Cost of equity	10.50% - 14.30%	12.40%
Tax rate	11.40% - 13.00%	12.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.5% - 14.3%	12.4%

WACC

300684.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.27	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	14.30%

Tax rate	11.40%	13.00%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	10.5%	14.3%


Selected WACC	12.4%

300684.SZ'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 300684.SZ:

cost_of_equity (12.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.27) + 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.