1141.HK WACC - Weighted Average Cost of Capital

The WACC of CMBC Capital Holdings Ltd (1141.HK) is 7.9%.

The Cost of Equity of CMBC Capital Holdings Ltd (1141.HK) is 9.70%.

The Cost of Debt of CMBC Capital Holdings Ltd (1141.HK) is 7.70%.

	Range	Selected
Cost of equity	7.50% - 11.90%	9.70%
Tax rate	1.70% - 8.80%	5.25%
Cost of debt	4.00% - 11.40%	7.70%
WACC	5.0% - 10.8%	7.9%

WACC

1141.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.77	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	11.90%

Tax rate	1.70%	8.80%
Debt/Equity ratio	2.41	2.41
Cost of debt	4.00%	11.40%

After-tax WACC	5.0%	10.8%


Selected WACC	7.9%

1141.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 1141.HK:

cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.77) + 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.