9618.HK WACC - Weighted Average Cost of Capital

The WACC of JD.Com Inc (9618.HK) is 9.0%.

The Cost of Equity of JD.Com Inc (9618.HK) is 9.65%.

The Cost of Debt of JD.Com Inc (9618.HK) is 7.75%.

	Range	Selected
Cost of equity	6.70% - 12.60%	9.65%
Tax rate	21.20% - 28.00%	24.60%
Cost of debt	4.00% - 11.50%	7.75%
WACC	6.1% - 11.9%	9.0%

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	0.63	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	12.60%

Tax rate	21.20%	28.00%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	11.50%

After-tax WACC	6.1%	11.9%


Selected WACC	9.0%

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 (9.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.63) + 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.