1252.HK
China Tianrui Group Cement Co Ltd
Price:  
0.29 
HKD
Volume:  
19,352,000
China | Construction Materials

1252.HK WACC - Weighted Average Cost of Capital

The WACC of China Tianrui Group Cement Co Ltd (1252.HK) is 7.5%.

The Cost of Equity of China Tianrui Group Cement Co Ltd (1252.HK) is 48.3%.
The Cost of Debt of China Tianrui Group Cement Co Ltd (1252.HK) is 5.8%.

RangeSelected
Cost of equity28.6% - 68.0%48.3%
Tax rate14.8% - 18.7%16.75%
Cost of debt5.1% - 6.5%5.8%
WACC5.8% - 9.1%7.5%
WACC

1252.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta4.39.19
Additional risk adjustments0.0%0.5%
Cost of equity28.6%68.0%
Tax rate14.8%18.7%
Debt/Equity ratio
15.1815.18
Cost of debt5.1%6.5%
After-tax WACC5.8%9.1%
Selected WACC7.5%

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.