000892.SZ WACC - Weighted Average Cost of Capital

The WACC of H&R Century Union Corp (000892.SZ) is 8.4%.

The Cost of Equity of H&R Century Union Corp (000892.SZ) is 8.55%.

The Cost of Debt of H&R Century Union Corp (000892.SZ) is 5.00%.

	Range	Selected
Cost of equity	6.80% - 10.30%	8.55%
Tax rate	2.90% - 3.80%	3.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.7% - 10.1%	8.4%

WACC

000892.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.67	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	10.30%

Tax rate	2.90%	3.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	5.00%	5.00%

After-tax WACC	6.7%	10.1%


Selected WACC	8.4%

000892.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 000892.SZ:

cost_of_equity (8.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.