8479.HK WACC - Weighted Average Cost of Capital

The WACC of JTF International Holdings Ltd (8479.HK) is 8.0%.

The Cost of Equity of JTF International Holdings Ltd (8479.HK) is 8.05%.

The Cost of Debt of JTF International Holdings Ltd (8479.HK) is 4.70%.

	Range	Selected
Cost of equity	6.00% - 10.10%	8.05%
Tax rate	35.20% - 37.70%	36.45%
Cost of debt	4.70% - 4.70%	4.70%
WACC	6.0% - 10.0%	8.0%

WACC

8479.HK WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	6.4%	7.4%
Adjusted beta	0.32	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	10.10%

Tax rate	35.20%	37.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.70%	4.70%

After-tax WACC	6.0%	10.0%


Selected WACC	8.0%

8479.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 8479.HK:

cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (6.90%) * adjusted_beta (0.32) + 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.