8429.TW WACC - Weighted Average Cost of Capital

The WACC of Jinli Group Holdings Ltd (8429.TW) is 11.1%.

The Cost of Equity of Jinli Group Holdings Ltd (8429.TW) is 12.80%.

The Cost of Debt of Jinli Group Holdings Ltd (8429.TW) is 10.80%.

	Range	Selected
Cost of equity	10.90% - 14.70%	12.80%
Tax rate	11.30% - 14.40%	12.85%
Cost of debt	10.80% - 10.80%	10.80%
WACC	10.3% - 12.0%	11.1%

WACC

8429.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.49	1.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.70%

Tax rate	11.30%	14.40%
Debt/Equity ratio	1	1
Cost of debt	10.80%	10.80%

After-tax WACC	10.3%	12.0%


Selected WACC	11.1%

8429.TW'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 8429.TW:

cost_of_equity (12.80%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.49) + 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.