817.HK WACC - Weighted Average Cost of Capital

The WACC of China Jinmao Holdings Group Ltd (817.HK) is 8.4%.

The Cost of Equity of China Jinmao Holdings Group Ltd (817.HK) is 13.10%.

The Cost of Debt of China Jinmao Holdings Group Ltd (817.HK) is 14.95%.

	Range	Selected
Cost of equity	10.00% - 16.20%	13.10%
Tax rate	43.70% - 48.10%	45.90%
Cost of debt	7.00% - 22.90%	14.95%
WACC	4.5% - 12.3%	8.4%

WACC

817.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.2	1.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	16.20%

Tax rate	43.70%	48.10%
Debt/Equity ratio	9.35	9.35
Cost of debt	7.00%	22.90%

After-tax WACC	4.5%	12.3%


Selected WACC	8.4%

817.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 817.HK:

cost_of_equity (13.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.2) + 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.