The WACC of Jinli Group Holdings Ltd (8429.TW) is 11.1%.
| Range | Selected | |
| Cost of equity | 10.60% - 14.90% | 12.75% |
| Tax rate | 11.30% - 14.40% | 12.85% |
| Cost of debt | 10.80% - 10.80% | 10.80% |
| WACC | 10.1% - 12.1% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.44 | 1.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.60% | 14.90% |
| Tax rate | 11.30% | 14.40% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 10.80% | 10.80% |
| After-tax WACC | 10.1% | 12.1% |
| Selected WACC | 11.1% | |
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 (12.75%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.44) + 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.