1252.HK WACC - Weighted Average Cost of Capital

The WACC of China Tianrui Group Cement Co Ltd (1252.HK) is 9.9%.

The Cost of Equity of China Tianrui Group Cement Co Ltd (1252.HK) is 31.65%.

The Cost of Debt of China Tianrui Group Cement Co Ltd (1252.HK) is 10.85%.

	Range	Selected
Cost of equity	25.30% - 38.00%	31.65%
Tax rate	14.80% - 18.70%	16.75%
Cost of debt	7.10% - 14.60%	10.85%
WACC	6.8% - 12.9%	9.9%

WACC

1252.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	3.76	4.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.30%	38.00%

Tax rate	14.80%	18.70%
Debt/Equity ratio	24.19	24.19
Cost of debt	7.10%	14.60%

After-tax WACC	6.8%	12.9%


Selected WACC	9.9%

1252.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 1252.HK:

cost_of_equity (31.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.76) + 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.