152.HK WACC - Weighted Average Cost of Capital

The WACC of Shenzhen International Holdings Ltd (152.HK) is 6.7%.

The Cost of Equity of Shenzhen International Holdings Ltd (152.HK) is 8.10%.

The Cost of Debt of Shenzhen International Holdings Ltd (152.HK) is 9.40%.

	Range	Selected
Cost of equity	6.80% - 9.40%	8.10%
Tax rate	32.40% - 33.80%	33.10%
Cost of debt	4.20% - 14.60%	9.40%
WACC	3.8% - 9.6%	6.7%

WACC

152.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	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.40%

Tax rate	32.40%	33.80%
Debt/Equity ratio	3.29	3.29
Cost of debt	4.20%	14.60%

After-tax WACC	3.8%	9.6%


Selected WACC	6.7%

152.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 152.HK:

cost_of_equity (8.10%) = 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.