9618.HK WACC - Weighted Average Cost of Capital

The WACC of JD.Com Inc (9618.HK) is 10.8%.

The Cost of Equity of JD.Com Inc (9618.HK) is 12.05%.

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

	Range	Selected
Cost of equity	10.20% - 13.90%	12.05%
Tax rate	21.20% - 28.00%	24.60%
Cost of debt	4.00% - 9.10%	6.55%
WACC	9.0% - 12.6%	10.8%

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	1.23	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	13.90%

Tax rate	21.20%	28.00%
Debt/Equity ratio	0.21	0.21
Cost of debt	4.00%	9.10%

After-tax WACC	9.0%	12.6%


Selected WACC	10.8%

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 (12.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.23) + 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.