1313.HK WACC - Weighted Average Cost of Capital

The WACC of China Resources Cement Holdings Ltd (1313.HK) is 6.2%.

The Cost of Equity of China Resources Cement Holdings Ltd (1313.HK) is 10.10%.

The Cost of Debt of China Resources Cement Holdings Ltd (1313.HK) is 4.25%.

	Range	Selected
Cost of equity	8.10% - 12.10%	10.10%
Tax rate	24.60% - 27.90%	26.25%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.2% - 7.1%	6.2%

WACC

1313.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.88	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	12.10%

Tax rate	24.60%	27.90%
Debt/Equity ratio	1.3	1.3
Cost of debt	4.00%	4.50%

After-tax WACC	5.2%	7.1%


Selected WACC	6.2%

1313.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 1313.HK:

cost_of_equity (10.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.88) + 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.