1430.HK WACC - Weighted Average Cost of Capital

The WACC of Suchuang Gas Corp Ltd (1430.HK) is 7.8%.

The Cost of Equity of Suchuang Gas Corp Ltd (1430.HK) is 8.45%.

The Cost of Debt of Suchuang Gas Corp Ltd (1430.HK) is 6.10%.

	Range	Selected
Cost of equity	7.40% - 9.50%	8.45%
Tax rate	31.10% - 35.10%	33.10%
Cost of debt	5.20% - 7.00%	6.10%
WACC	6.9% - 8.8%	7.8%

WACC

1430.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.75	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	9.50%

Tax rate	31.10%	35.10%
Debt/Equity ratio	0.15	0.15
Cost of debt	5.20%	7.00%

After-tax WACC	6.9%	8.8%


Selected WACC	7.8%

1430.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 1430.HK:

cost_of_equity (8.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.75) + 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.