1165.HK
Shunfeng International Clean Energy Ltd
Price:  
0.03 
HKD
Volume:  
92,682,000
China | Independent Power and Renewable Electricity Producers

1165.HK WACC - Weighted Average Cost of Capital

The WACC of Shunfeng International Clean Energy Ltd (1165.HK) is 6.9%.

The Cost of Equity of Shunfeng International Clean Energy Ltd (1165.HK) is 85.05%.
The Cost of Debt of Shunfeng International Clean Energy Ltd (1165.HK) is 5.5%.

RangeSelected
Cost of equity59.2% - 110.9%85.05%
Tax rate0.9% - 1.3%1.1%
Cost of debt4.0% - 7.0%5.5%
WACC5.0% - 8.8%6.9%
WACC

1165.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta9.4315.33
Additional risk adjustments0.0%0.5%
Cost of equity59.2%110.9%
Tax rate0.9%1.3%
Debt/Equity ratio
52.9352.93
Cost of debt4.0%7.0%
After-tax WACC5.0%8.8%
Selected WACC6.9%

1165.HK WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.130.41
Relevered beta13.5822.39
Adjusted relevered beta9.4315.33

1165.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 1165.HK:

cost_of_equity (85.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (9.43) + 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.