YJ
Yunji Inc
Price:  
1.59 
USD
Volume:  
2,313.00
China | Internet & Direct Marketing Retail
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YJ WACC - Weighted Average Cost of Capital

The WACC of Yunji Inc (YJ) is 6.6%.

The Cost of Equity of Yunji Inc (YJ) is 9.35%.
The Cost of Debt of Yunji Inc (YJ) is 5.00%.

Range Selected
Cost of equity 6.80% - 11.90% 9.35%
Tax rate 20.30% - 26.90% 23.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.4% - 7.8% 6.6%
WACC

YJ WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 4.2% 5.2%
Adjusted beta 0.99 1.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 11.90%
Tax rate 20.30% 26.90%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.4% 7.8%
Selected WACC 6.6%

YJ'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 YJ:

cost_of_equity (9.35%) = risk_free_rate (2.85%) + equity_risk_premium (4.70%) * adjusted_beta (0.99) + 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.