1359.HK WACC - Weighted Average Cost of Capital

The WACC of China Cinda Asset Management Co Ltd (1359.HK) is 6.4%.

The Cost of Equity of China Cinda Asset Management Co Ltd (1359.HK) is 59.95%.

The Cost of Debt of China Cinda Asset Management Co Ltd (1359.HK) is 6.05%.

	Range	Selected
Cost of equity	19.60% - 100.30%	59.95%
Tax rate	24.30% - 31.60%	27.95%
Cost of debt	4.00% - 8.10%	6.05%
WACC	3.7% - 9.2%	6.4%

WACC

1359.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	2.8	13.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.60%	100.30%

Tax rate	24.30%	31.60%
Debt/Equity ratio	24.96	24.96
Cost of debt	4.00%	8.10%

After-tax WACC	3.7%	9.2%


Selected WACC	6.4%

1359.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 1359.HK:

cost_of_equity (59.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.8) + 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.