3306.HK WACC - Weighted Average Cost of Capital

The WACC of JNBY Design Ltd (3306.HK) is 10.2%.

The Cost of Equity of JNBY Design Ltd (3306.HK) is 10.50%.

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

	Range	Selected
Cost of equity	9.10% - 11.90%	10.50%
Tax rate	27.60% - 28.30%	27.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.8% - 11.5%	10.2%

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	1.04	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.90%

Tax rate	27.60%	28.30%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.00%	5.00%

After-tax WACC	8.8%	11.5%


Selected WACC	10.2%

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 (10.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.04) + 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.