JFU WACC - Weighted Average Cost of Capital
The WACC of 9F Inc (JFU) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.8% - 10.6% | 8.7% |
| Tax rate | 6.8% - 10.0% | 8.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.5% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.63 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 10.6% |
| Tax rate | 6.8% | 10.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.5% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JFU | 9F Inc | 1.09 | -0.1 | -0.05 |
| AUTO | Autoweb Inc | 1.85 | 2.07 | 0.77 |
| DHX | DHI Group Inc | 0.22 | 0.73 | 0.6 |
| EQ.V | EQ Inc | 0.03 | -0.05 | -0.04 |
| KRKR | 36kr Holdings Inc | 0.12 | 0.65 | 0.58 |
| MDF.TO | mdf Commerce Inc | 0.04 | 0.31 | 0.3 |
| MFON | Mobivity Holdings Corp | 0.68 | -0.15 | -0.09 |
| MVEN | Themaven Inc | 0.57 | 0.21 | 0.14 |
| PROM | Propel Media Inc | 0.3 | -1.43 | -1.12 |
| WB | Weibo Corp | 0.25 | 1.02 | 0.83 |
| YNDX | Yandex NV | 0.28 | 1.61 | 1.28 |
| Low | High | |
| Unlevered beta | 0.14 | 0.58 |
| Relevered beta | 0.45 | 1.03 |
| Adjusted relevered beta | 0.63 | 1.02 |
JFU'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 JFU:
cost_of_equity (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * 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.