103.HK WACC - Weighted Average Cost of Capital

The WACC of Shougang Concord Century Holdings Ltd (103.HK) is 6.1%.

The Cost of Equity of Shougang Concord Century Holdings Ltd (103.HK) is 6.30%.

The Cost of Debt of Shougang Concord Century Holdings Ltd (103.HK) is 6.20%.

	Range	Selected
Cost of equity	5.40% - 7.20%	6.30%
Tax rate	6.70% - 10.00%	8.35%
Cost of debt	4.30% - 8.10%	6.20%
WACC	4.9% - 7.2%	6.1%

WACC

103.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.43	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.20%

Tax rate	6.70%	10.00%
Debt/Equity ratio	0.6	0.6
Cost of debt	4.30%	8.10%

After-tax WACC	4.9%	7.2%


Selected WACC	6.1%

103.HK'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 103.HK:

cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.