111.HK WACC - Weighted Average Cost of Capital

The WACC of Cinda International Holdings Ltd (111.HK) is 6.0%.

The Cost of Equity of Cinda International Holdings Ltd (111.HK) is 13.05%.

The Cost of Debt of Cinda International Holdings Ltd (111.HK) is 5.25%.

	Range	Selected
Cost of equity	10.40% - 15.70%	13.05%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.00% - 6.50%	5.25%
WACC	4.7% - 7.3%	6.0%

WACC

111.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.27	1.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	15.70%

Tax rate	22.10%	22.30%
Debt/Equity ratio	3.77	3.77
Cost of debt	4.00%	6.50%

After-tax WACC	4.7%	7.3%


Selected WACC	6.0%

111.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 111.HK:

cost_of_equity (13.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.27) + 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.