144.HK WACC - Weighted Average Cost of Capital

The WACC of China Merchants Port Holdings Co Ltd (144.HK) is 6.4%.

The Cost of Equity of China Merchants Port Holdings Co Ltd (144.HK) is 7.80%.

The Cost of Debt of China Merchants Port Holdings Co Ltd (144.HK) is 4.65%.

	Range	Selected
Cost of equity	6.40% - 9.20%	7.80%
Tax rate	11.70% - 12.50%	12.10%
Cost of debt	4.20% - 5.10%	4.65%
WACC	5.4% - 7.5%	6.4%

WACC

144.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.59	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.20%

Tax rate	11.70%	12.50%
Debt/Equity ratio	0.58	0.58
Cost of debt	4.20%	5.10%

After-tax WACC	5.4%	7.5%


Selected WACC	6.4%

144.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 144.HK:

cost_of_equity (7.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.