1569.HK
Minsheng Education Group Company Ltd
Price:  
0.14 
HKD
Volume:  
302,000.00
China | Diversified Consumer Services
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1569.HK WACC - Weighted Average Cost of Capital

The WACC of Minsheng Education Group Company Ltd (1569.HK) is 10.7%.

The Cost of Equity of Minsheng Education Group Company Ltd (1569.HK) is 18.65%.
The Cost of Debt of Minsheng Education Group Company Ltd (1569.HK) is 11.55%.

Range Selected
Cost of equity 11.40% - 25.90% 18.65%
Tax rate 10.30% - 31.90% 21.10%
Cost of debt 8.50% - 14.60% 11.55%
WACC 8.4% - 12.9% 10.7%
WACC

1569.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.42 3.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 25.90%
Tax rate 10.30% 31.90%
Debt/Equity ratio 4.35 4.35
Cost of debt 8.50% 14.60%
After-tax WACC 8.4% 12.9%
Selected WACC 10.7%

1569.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 1569.HK:

cost_of_equity (18.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.42) + 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.