1252.HK WACC - Weighted Average Cost of Capital

The WACC of China Tianrui Group Cement Co Ltd (1252.HK) is 7.4%.

The Cost of Equity of China Tianrui Group Cement Co Ltd (1252.HK) is 67.35%.

The Cost of Debt of China Tianrui Group Cement Co Ltd (1252.HK) is 5.80%.

	Range	Selected
Cost of equity	38.60% - 96.10%	67.35%
Tax rate	14.80% - 18.70%	16.75%
Cost of debt	5.10% - 6.50%	5.80%
WACC	5.8% - 9.1%	7.4%

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	5.97	13.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	38.60%	96.10%

Tax rate	14.80%	18.70%
Debt/Equity ratio	22.77	22.77
Cost of debt	5.10%	6.50%

After-tax WACC	5.8%	9.1%


Selected WACC	7.4%

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 (67.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (5.97) + 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.