151.HK WACC - Weighted Average Cost of Capital

The WACC of Want Want China Holdings Ltd (151.HK) is 7.5%.

The Cost of Equity of Want Want China Holdings Ltd (151.HK) is 7.90%.

The Cost of Debt of Want Want China Holdings Ltd (151.HK) is 4.25%.

	Range	Selected
Cost of equity	6.70% - 9.10%	7.90%
Tax rate	25.60% - 26.60%	26.10%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.4% - 8.6%	7.5%

WACC

151.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.65	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	9.10%

Tax rate	25.60%	26.60%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.00%	4.50%

After-tax WACC	6.4%	8.6%


Selected WACC	7.5%

151.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 151.HK:

cost_of_equity (7.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.