1269.HK WACC - Weighted Average Cost of Capital

The WACC of China First Capital Group Ltd (1269.HK) is 6.4%.

The Cost of Equity of China First Capital Group Ltd (1269.HK) is 23.50%.

The Cost of Debt of China First Capital Group Ltd (1269.HK) is 6.05%.

	Range	Selected
Cost of equity	12.20% - 34.80%	23.50%
Tax rate	0.10% - 0.70%	0.40%
Cost of debt	4.00% - 8.10%	6.05%
WACC	4.2% - 8.7%	6.4%

WACC

1269.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.55	4.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	34.80%

Tax rate	0.10%	0.70%
Debt/Equity ratio	40.25	40.25
Cost of debt	4.00%	8.10%

After-tax WACC	4.2%	8.7%


Selected WACC	6.4%

1269.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 1269.HK:

cost_of_equity (23.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.55) + 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.