6618.HK WACC - Weighted Average Cost of Capital

The WACC of JD Health International Inc (6618.HK) is 10.4%.

The Cost of Equity of JD Health International Inc (6618.HK) is 10.40%.

The Cost of Debt of JD Health International Inc (6618.HK) is 13.60%.

	Range	Selected
Cost of equity	9.00% - 11.80%	10.40%
Tax rate	16.70% - 19.60%	18.15%
Cost of debt	4.00% - 23.20%	13.60%
WACC	9.0% - 11.8%	10.4%

WACC

6618.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.03	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.80%

Tax rate	16.70%	19.60%
Debt/Equity ratio	0	0
Cost of debt	4.00%	23.20%

After-tax WACC	9.0%	11.8%


Selected WACC	10.4%

6618.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 6618.HK:

cost_of_equity (10.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.03) + 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.