144.HK WACC - Weighted Average Cost of Capital

The WACC of China Merchants Port Holdings Co Ltd (144.HK) is 7.0%.

The Cost of Equity of China Merchants Port Holdings Co Ltd (144.HK) is 8.75%.

The Cost of Debt of China Merchants Port Holdings Co Ltd (144.HK) is 4.50%.

	Range	Selected
Cost of equity	7.60% - 9.90%	8.75%
Tax rate	11.70% - 12.50%	12.10%
Cost of debt	4.40% - 4.60%	4.50%
WACC	6.2% - 7.8%	7.0%

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	0.78	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.90%

Tax rate	11.70%	12.50%
Debt/Equity ratio	0.56	0.56
Cost of debt	4.40%	4.60%

After-tax WACC	6.2%	7.8%


Selected WACC	7.0%

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 (8.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.78) + 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.