149.HK WACC - Weighted Average Cost of Capital

The WACC of China Agri-Products Exchange Ltd (149.HK) is 5.1%.

The Cost of Equity of China Agri-Products Exchange Ltd (149.HK) is 6.35%.

The Cost of Debt of China Agri-Products Exchange Ltd (149.HK) is 7.30%.

	Range	Selected
Cost of equity	5.10% - 7.60%	6.35%
Tax rate	29.10% - 46.20%	37.65%
Cost of debt	6.50% - 8.10%	7.30%
WACC	4.8% - 5.4%	5.1%

WACC

149.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.38	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	7.60%

Tax rate	29.10%	46.20%
Debt/Equity ratio	1.99	1.99
Cost of debt	6.50%	8.10%

After-tax WACC	4.8%	5.4%


Selected WACC	5.1%

149.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 149.HK:

cost_of_equity (6.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.