1380.HK WACC - Weighted Average Cost of Capital

The WACC of China Kingstone Mining Holdings Ltd (1380.HK) is 17.9%.

The Cost of Equity of China Kingstone Mining Holdings Ltd (1380.HK) is 9.25%.

The Cost of Debt of China Kingstone Mining Holdings Ltd (1380.HK) is 34.60%.

	Range	Selected
Cost of equity	7.90% - 10.60%	9.25%
Tax rate	0.20% - 0.60%	0.40%
Cost of debt	7.00% - 62.20%	34.60%
WACC	7.6% - 28.1%	17.9%

WACC

1380.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.85	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.60%

Tax rate	0.20%	0.60%
Debt/Equity ratio	0.52	0.52
Cost of debt	7.00%	62.20%

After-tax WACC	7.6%	28.1%


Selected WACC	17.9%

1380.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 1380.HK:

cost_of_equity (9.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.85) + 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.