9618.HK WACC - Weighted Average Cost of Capital

The WACC of JD.Com Inc (9618.HK) is 11.0%.

The Cost of Equity of JD.Com Inc (9618.HK) is 11.95%.

The Cost of Debt of JD.Com Inc (9618.HK) is 6.55%.

	Range	Selected
Cost of equity	10.10% - 13.80%	11.95%
Tax rate	21.20% - 28.00%	24.60%
Cost of debt	4.00% - 9.10%	6.55%
WACC	9.1% - 12.8%	11.0%

WACC

9618.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.21	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.80%

Tax rate	21.20%	28.00%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	9.10%

After-tax WACC	9.1%	12.8%


Selected WACC	11.0%

9618.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 9618.HK:

cost_of_equity (11.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.21) + 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.