1359.HK WACC - Weighted Average Cost of Capital

The WACC of China Cinda Asset Management Co Ltd (1359.HK) is 7.1%.

The Cost of Equity of China Cinda Asset Management Co Ltd (1359.HK) is 29.95%.

The Cost of Debt of China Cinda Asset Management Co Ltd (1359.HK) is 9.30%.

	Range	Selected
Cost of equity	12.50% - 47.40%	29.95%
Tax rate	24.30% - 31.70%	28.00%
Cost of debt	4.00% - 14.60%	9.30%
WACC	3.3% - 10.9%	7.1%

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	1.61	6.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	47.40%

Tax rate	24.30%	31.70%
Debt/Equity ratio	40.39	40.39
Cost of debt	4.00%	14.60%

After-tax WACC	3.3%	10.9%


Selected WACC	7.1%

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 (29.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.61) + 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.