JKS
JinkoSolar Holding Co Ltd
Price:  
23.44 
USD
Volume:  
471,265.00
China | Semiconductors & Semiconductor Equipment
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JKS WACC - Weighted Average Cost of Capital

The WACC of JinkoSolar Holding Co Ltd (JKS) is 7.5%.

The Cost of Equity of JinkoSolar Holding Co Ltd (JKS) is 27.45%.
The Cost of Debt of JinkoSolar Holding Co Ltd (JKS) is 5.50%.

Range Selected
Cost of equity 19.00% - 35.90% 27.45%
Tax rate 23.00% - 27.50% 25.25%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.4% - 9.5% 7.5%
WACC

JKS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 3.29 5.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 19.00% 35.90%
Tax rate 23.00% 27.50%
Debt/Equity ratio 5.91 5.91
Cost of debt 4.00% 7.00%
After-tax WACC 5.4% 9.5%
Selected WACC 7.5%

JKS'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 JKS:

cost_of_equity (27.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.29) + 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.