1417.HK WACC - Weighted Average Cost of Capital

The WACC of Riverine China Holdings Ltd (1417.HK) is 23.3%.

The Cost of Equity of Riverine China Holdings Ltd (1417.HK) is 26.15%.

The Cost of Debt of Riverine China Holdings Ltd (1417.HK) is 29.40%.

	Range	Selected
Cost of equity	21.40% - 30.90%	26.15%
Tax rate	22.00% - 23.40%	22.70%
Cost of debt	7.00% - 51.80%	29.40%
WACC	8.7% - 37.9%	23.3%

WACC

1417.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	3.11	3.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.40%	30.90%

Tax rate	22.00%	23.40%
Debt/Equity ratio	3.99	3.99
Cost of debt	7.00%	51.80%

After-tax WACC	8.7%	37.9%


Selected WACC	23.3%

1417.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 1417.HK:

cost_of_equity (26.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.11) + 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.