JIN.OL
Jinhui Shipping and Transportation Ltd
Price:  
5.5 
NOK
Volume:  
47,045
Hong Kong | Marine

JIN.OL WACC - Weighted Average Cost of Capital

The WACC of Jinhui Shipping and Transportation Ltd (JIN.OL) is 9.4%.

The Cost of Equity of Jinhui Shipping and Transportation Ltd (JIN.OL) is 9.15%.
The Cost of Debt of Jinhui Shipping and Transportation Ltd (JIN.OL) is 9.55%.

RangeSelected
Cost of equity7.6% - 10.7%9.15%
Tax rate0.1% - 0.2%0.15%
Cost of debt4.0% - 15.1%9.55%
WACC5.1% - 13.7%9.4%
WACC

JIN.OL WACC calculation

CategoryLowHigh
Long-term bond rate3.3%3.8%
Equity market risk premium5.1%6.1%
Adjusted beta0.831.05
Additional risk adjustments0.0%0.5%
Cost of equity7.6%10.7%
Tax rate0.1%0.2%
Debt/Equity ratio
2.192.19
Cost of debt4.0%15.1%
After-tax WACC5.1%13.7%
Selected WACC9.4%

JIN.OL'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 JIN.OL:

cost_of_equity (9.15%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.83) + 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.