1250.HK
Beijing Enterprises Clean Energy Group Ltd
Price:  
1.69 
HKD
Volume:  
100,200
Hong Kong | Independent Power and Renewable Electricity Producers

1250.HK WACC - Weighted Average Cost of Capital

The WACC of Beijing Enterprises Clean Energy Group Ltd (1250.HK) is 6.2%.

The Cost of Equity of Beijing Enterprises Clean Energy Group Ltd (1250.HK) is 15.75%.
The Cost of Debt of Beijing Enterprises Clean Energy Group Ltd (1250.HK) is 6.25%.

RangeSelected
Cost of equity7.8% - 23.7%15.75%
Tax rate17.4% - 24.1%20.75%
Cost of debt4.4% - 8.1%6.25%
WACC4.1% - 8.3%6.2%
WACC

1250.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.822.84
Additional risk adjustments0.0%0.5%
Cost of equity7.8%23.7%
Tax rate17.4%24.1%
Debt/Equity ratio
7.087.08
Cost of debt4.4%8.1%
After-tax WACC4.1%8.3%
Selected WACC6.2%

1250.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 1250.HK:

cost_of_equity (15.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.82) + 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.