3306.HK WACC - Weighted Average Cost of Capital

The WACC of JNBY Design Ltd (3306.HK) is 9.5%.

The Cost of Equity of JNBY Design Ltd (3306.HK) is 9.80%.

The Cost of Debt of JNBY Design Ltd (3306.HK) is 5.00%.

	Range	Selected
Cost of equity	8.60% - 11.00%	9.80%
Tax rate	27.60% - 28.30%	27.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.4% - 10.7%	9.5%

WACC

3306.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.95	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	11.00%

Tax rate	27.60%	28.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.00%	5.00%

After-tax WACC	8.4%	10.7%


Selected WACC	9.5%

3306.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 3306.HK:

cost_of_equity (9.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.95) + 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.