1380.HK WACC - Weighted Average Cost of Capital
The WACC of China Kingstone Mining Holdings Ltd (1380.HK) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.4% | 9.1% |
| Tax rate | 0.2% - 0.6% | 0.4% |
| Cost of debt | 7.0% - 8.3% | 7.65% |
| WACC | 7.5% - 9.7% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.82 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.4% |
| Tax rate | 0.2% | 0.6% |
| Debt/Equity ratio | 0.53 | 0.53 |
| Cost of debt | 7.0% | 8.3% |
| After-tax WACC | 7.5% | 9.7% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1380.HK | China Kingstone Mining Holdings Ltd | 0.53 | 1.7 | 1.11 |
| 000060.SZ | Shenzhen Zhongjin Lingnan Nonfemet Co Ltd | 1.2 | 0.97 | 0.44 |
| 000762.SZ | Tibet Mineral Development Co Ltd | 0.14 | 1.29 | 1.13 |
| 000975.SZ | Yintai Gold Co Ltd | 0.03 | 0.24 | 0.24 |
| 1303.HK | Huili Resources Group Ltd | 0.27 | -0.18 | -0.14 |
| 3833.HK | Xinjiang Xinxin Mining Industry Co Ltd | 0.51 | 0.86 | 0.57 |
| 3939.HK | Wanguo International Mining Group Ltd | 0.01 | 0 | 0 |
| 600531.SS | Henan Yuguang Gold & Lead Co Ltd | 1.3 | 1.14 | 0.5 |
| 601020.SS | Tibet Huayu Mining Co Ltd | 0.05 | 1.44 | 1.37 |
| 601168.SS | Western Mining Co Ltd | 0.63 | 1.03 | 0.64 |
| Low | High | |
| Unlevered beta | 0.48 | 0.6 |
| Relevered beta | 0.73 | 0.91 |
| Adjusted relevered beta | 0.82 | 0.94 |
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 (9.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.82) + 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.