601778.SS WACC - Weighted Average Cost of Capital
The WACC of Jinko Power Technology Co Ltd (601778.SS) is 6.4%.
| Range | Selected | |
| Cost of equity | 9.3% - 12.3% | 10.8% |
| Tax rate | 14.2% - 17.6% | 15.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 6.8% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.09 | 1.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 12.3% |
| Tax rate | 14.2% | 17.6% |
| Debt/Equity ratio | 2.08 | 2.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 6.8% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 601778.SS | Jinko Power Technology Co Ltd | 2.08 | 1.26 | 0.46 |
| 000591.SZ | CECEP Solar Energy Co Ltd | 1.28 | 1.09 | 0.53 |
| 000791.SZ | GEPIC Energy Development Co Ltd | 0.82 | 0.79 | 0.47 |
| 002039.SZ | Guizhou Qianyuan Power Co Ltd | 1.15 | 0.67 | 0.34 |
| 1250.HK | Beijing Enterprises Clean Energy Group Ltd | 7.48 | 0.61 | 0.08 |
| 1798.HK | China Datang Corp Renewable Power Co Ltd | 4.59 | 0.67 | 0.14 |
| 3868.HK | Xinyi Energy Holdings Ltd | 1.05 | 1.13 | 0.6 |
| 600900.SS | China Yangtze Power Co Ltd | 0.41 | 0.19 | 0.14 |
| 601016.SS | CECEP Wind-Power Corp | 1.25 | 1.01 | 0.5 |
| 603693.SS | Jiangsu New Energy Development Co Ltd | 0.76 | 1.03 | 0.63 |
| Low | High | |
| Unlevered beta | 0.41 | 0.48 |
| Relevered beta | 1.13 | 1.31 |
| Adjusted relevered beta | 1.09 | 1.21 |
601778.SS'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 601778.SS:
cost_of_equity (10.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.09) + 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.