China Jinmao Holdings GroupFRA:3F5 -0.74%47 WACC % is 2.55% as of Jun. 30, 2026, which is 28% below its 10-year median of 3.56. GuruFocus rates FRA:3F5 with a GF Score™ of 47/100 and a GF Value™ of €0.10 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,844 Real Estate companies, China Jinmao Holdings Group ranks better than 84.82% on this metric.
As of today (2026-06-30), China Jinmao Holdings Group's weighted average cost of capital is 2.55%%. China Jinmao Holdings Group's ROIC % is 0.85% (calculated using TTM income statement data).
China Jinmao Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
China Jinmao Holdings Group (FRA:3F5) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, China Jinmao Holdings Group's weighted average cost of capital is 2.55%%. China Jinmao Holdings Group's ROIC % is 0.85% (calculated using TTM income statement data).
China Jinmao Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
China Jinmao Holdings Group WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Jinmao Holdings Group WACC % Competitor Comparison
For the Real Estate - Development subindustry, China Jinmao Holdings Group's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Jinmao Holdings Group WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Jinmao Holdings Group's WACC % distribution charts can be found below:
* The bar in red indicates where China Jinmao Holdings Group's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, China Jinmao Holdings Group's market capitalization (E) is €1906.643 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, China Jinmao Holdings Group's latest one-year semi-annual average Book Value of Debt (D) is €15683.391 Mil.
a) weight of equity = E / (E + D) = 1906.643 / (1906.643 + 15683.391) = 0.1084
b) weight of debt = D / (E + D) = 15683.391 / (1906.643 + 15683.391) = 0.8916
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.363%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. China Jinmao Holdings Group's beta is 2.1237.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.363% + 2.1237 * 6% = 17.1052%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, China Jinmao Holdings Group's interest expense (positive number) was €277.188 Mil. Its total Book Value of Debt (D) is €15683.391 Mil.
Cost of Debt = 277.188 / 15683.391 = 1.7674%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 336.474 / 601.143 = 55.97%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Jinmao Holdings Group (FRA:3F5) has a WACC % of 2.55% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on China Jinmao Holdings Group and its competitors. This is 28% below median its historical median of 3.56. Over the past decade, China Jinmao Holdings Group's WACC % has ranged from 2.42 to 5.86. According to the industry distribution chart, China Jinmao Holdings Group ranks #280 out of 1844 companies in the Real Estate industry, placing it in the top 15.2%.
Is China Jinmao Holdings Group's WACC % too high?
China Jinmao Holdings Group's current WACC % of 2.55% is 28% below median its 10-year median of 3.56. Over the past 10 years, this metric has ranged from a low of 2.42 to a high of 5.86. The Real Estate industry median WACC % is 6.50. China Jinmao Holdings Group's value of 2.55% is 60.7% below this industry median. Based on the distribution chart, China Jinmao Holdings Group ranks #280 out of 1844 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, China Jinmao Holdings Group has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Jinmao Holdings Group's WACC % compare to competitors?
According to the Real Estate industry distribution chart, China Jinmao Holdings Group ranks #280 out of 1844 companies for WACC %. This places China Jinmao Holdings Group in the top 15% of its industry — outperforming the majority of peers. The industry median WACC % is 6.50. China Jinmao Holdings Group's value of 2.55% is 60.7% below this benchmark. Historically, China Jinmao Holdings Group's own WACC % has ranged from 2.42 to 5.86 over the past decade. While the company's 10-year median is 3.56 vs. the industry median of 6.50, China Jinmao Holdings Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Real Estate company?
The median WACC % among Real Estate companies is 6.50, based on 1,844 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Jinmao Holdings Group's current WACC % of 2.55% is 60.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on China Jinmao Holdings Group and its competitors. For the Real Estate industry, the median WACC % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Jinmao Holdings Group's current WACC % is 2.55%, which is 28% below median its own 10-year median of 3.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Jinmao Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, China Jinmao Holdings Group (FRA:3F5) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.10, compared to a current price of €0.13 — trading 34% above its estimated fair value. The current WACC % is 2.55%, which is 28% below median its 10-year median of 3.56 and 60.7% below the Real Estate industry median of 6.50. China Jinmao Holdings Group's overall GF Score™ is 47/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For China Jinmao Holdings Group (FRA:3F5), the current WACC % is 2.55% as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Jinmao Holdings Group (FRA:3F5) Overvalued in 2026?
Based on GuruFocus' analysis, China Jinmao Holdings Group stock appears to be overvalued.
The current stock price of €0.13 is trading 34% above its estimated GF Value™ of €0.10.
GuruFocus considers China Jinmao Holdings Group to be Significantly Overvalued.
Key valuation signals for FRA:3F5:
WACC %: 2.55% (28% below median its 10-year median of 3.56)
GF Value™: €0.10 vs. price of €0.13 (34% above fair value)
Industry Position: 60.7% below the Real Estate median (#280 of 1844)
No single metric tells the full story. See the FRA:3F5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Jinmao, formerly known as Franshion Properties, is a mid-cap real estate developer in China. It listed on the Hong Kong stock exchange in 2007. As the real estate arm of Sinochem, a leading government-controlled chemical-producing conglomerate, China Jinmao focuses on the development of high-end residential projects in wealthy cities of China with premium pricing. It also engages in a unique city operation model, in which it has opportunities to participate in large-scale primary and secondary land development through specific agreements with local government. Under the mixed ownership reform initiative, China Jinmao brought in Ping An as a long-term financial investor and second-largest shareholder.
47GF Score
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