000099.SZ WACC - Weighted Average Cost of Capital

The WACC of Citic Offshore Helicopter Co Ltd (000099.SZ) is 8.4%.

The Cost of Equity of Citic Offshore Helicopter Co Ltd (000099.SZ) is 8.60%.

The Cost of Debt of Citic Offshore Helicopter Co Ltd (000099.SZ) is 5.00%.

	Range	Selected
Cost of equity	6.90% - 10.30%	8.60%
Tax rate	23.30% - 25.10%	24.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.7% - 10.0%	8.4%

WACC

000099.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.68	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	10.30%

Tax rate	23.30%	25.10%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.00%	5.00%

After-tax WACC	6.7%	10.0%


Selected WACC	8.4%

000099.SZ'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 000099.SZ:

cost_of_equity (8.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.68) + 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.