1292.HK WACC - Weighted Average Cost of Capital

The WACC of Changan Minsheng APLL Logistics Co Ltd (1292.HK) is 5.3%.

The Cost of Equity of Changan Minsheng APLL Logistics Co Ltd (1292.HK) is 8.35%.

The Cost of Debt of Changan Minsheng APLL Logistics Co Ltd (1292.HK) is 4.95%.

	Range	Selected
Cost of equity	6.40% - 10.30%	8.35%
Tax rate	27.40% - 29.80%	28.60%
Cost of debt	4.00% - 5.90%	4.95%
WACC	4.2% - 6.4%	5.3%

WACC

1292.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.59	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	10.30%

Tax rate	27.40%	29.80%
Debt/Equity ratio	1.64	1.64
Cost of debt	4.00%	5.90%

After-tax WACC	4.2%	6.4%


Selected WACC	5.3%

1292.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 1292.HK:

cost_of_equity (8.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.