1252.HK WACC - Weighted Average Cost of Capital
The WACC of China Tianrui Group Cement Co Ltd (1252.HK) is 7.5%.
| Range | Selected | |
| Cost of equity | 28.6% - 68.0% | 48.3% |
| Tax rate | 14.8% - 18.7% | 16.75% |
| Cost of debt | 5.1% - 6.5% | 5.8% |
| WACC | 5.8% - 9.1% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 4.3 | 9.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 28.6% | 68.0% |
| Tax rate | 14.8% | 18.7% |
| Debt/Equity ratio | 15.18 | 15.18 |
| Cost of debt | 5.1% | 6.5% |
| After-tax WACC | 5.8% | 9.1% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1252.HK | China Tianrui Group Cement Co Ltd | 15.18 | 0.11 | 0.01 |
| 000012.SZ | CSG Holding Co Ltd | 1.06 | 0.88 | 0.47 |
| 000789.SZ | Jiangxi Wannianqing Cement Co Ltd | 0.63 | 1.3 | 0.85 |
| 000877.SZ | Xinjiang Tianshan Cement Co Ltd | 4.05 | 1.37 | 0.31 |
| 000935.SZ | Sichuan Shuangma Cement Co Ltd | 0.06 | 1.2 | 1.15 |
| 002398.SZ | Lets Holding Group Co Ltd | 0.15 | 1.34 | 1.2 |
| 2233.HK | West China Cement Ltd | 1.08 | 0.66 | 0.35 |
| 300234.SZ | Zhejiang Kaier New Materials Co Ltd | 0.01 | 1.26 | 1.25 |
| 300767.SZ | QuakeSafe Technologies Co Ltd | 0.1 | 1.74 | 1.6 |
| 743.HK | Asia Cement (China) Holdings Corp | 0.4 | 0.51 | 0.38 |
| Low | High | |
| Unlevered beta | 0.43 | 0.97 |
| Relevered beta | 5.93 | 13.22 |
| Adjusted relevered beta | 4.3 | 9.19 |
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 (48.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (4.3) + 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.