1090.HK WACC - Weighted Average Cost of Capital
The WACC of Da Ming International Holdings Ltd (1090.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 15.9% - 22.4% | 19.15% |
| Tax rate | 15.8% - 21.6% | 18.7% |
| Cost of debt | 4.4% - 7.0% | 5.7% |
| WACC | 4.7% - 7.0% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 2.18 | 2.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.9% | 22.4% |
| Tax rate | 15.8% | 21.6% |
| Debt/Equity ratio | 10.36 | 10.36 |
| Cost of debt | 4.4% | 7.0% |
| After-tax WACC | 4.7% | 7.0% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1090.HK | Da Ming International Holdings Ltd | 10.36 | 0.35 | 0.04 |
| 000778.SZ | Xinxing Ductile Iron Pipes Co Ltd | 1.18 | 1.02 | 0.52 |
| 002110.SZ | Sansteel Minguang Co Ltd Fujian | 2.71 | 1.52 | 0.47 |
| 1266.HK | Xiwang Special Steel Co Ltd | 204.75 | 0.97 | 0.01 |
| 600282.SS | Nanjing Iron & Steel Co Ltd | 1.03 | 0.77 | 0.42 |
| 600307.SS | Gansu Jiu Steel Group Hongxing Iron & Steel Co Ltd | 3.52 | 0.9 | 0.23 |
| 600569.SS | AnYang lron & Steel lnc | 3.03 | 1.18 | 0.34 |
| 600581.SS | Xinjiang Ba Yi Iron & Steel Co Ltd | 3.71 | 1.22 | 0.3 |
| 601003.SS | Liuzhou Iron & Steel Co Ltd | 3.84 | 1.13 | 0.27 |
| 601686.SS | Tianjin You Fa Steel Pipe Group Stock Co Ltd | 1.03 | 0.75 | 0.41 |
| Low | High | |
| Unlevered beta | 0.29 | 0.37 |
| Relevered beta | 2.76 | 3.48 |
| Adjusted relevered beta | 2.18 | 2.66 |
1090.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 1090.HK:
cost_of_equity (19.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.18) + 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.