1230.HK WACC - Weighted Average Cost of Capital

The WACC of Yashili International Holdings Ltd (1230.HK) is 8.2%.

The Cost of Equity of Yashili International Holdings Ltd (1230.HK) is 8.25%.

The Cost of Debt of Yashili International Holdings Ltd (1230.HK) is 9.30%.

	Range	Selected
Cost of equity	7.30% - 9.20%	8.25%
Tax rate	13.30% - 17.00%	15.15%
Cost of debt	7.00% - 11.60%	9.30%
WACC	7.2% - 9.3%	8.2%

WACC

1230.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.74	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	9.20%

Tax rate	13.30%	17.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	11.60%

After-tax WACC	7.2%	9.3%


Selected WACC	8.2%

1230.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 1230.HK:

cost_of_equity (8.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.74) + 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.