1579.HK
Yihai International Holding Ltd
Price:  
13.74 
HKD
Volume:  
2,969,583
China | Food Products

1579.HK WACC - Weighted Average Cost of Capital

The WACC of Yihai International Holding Ltd (1579.HK) is 10.6%.

The Cost of Equity of Yihai International Holding Ltd (1579.HK) is 10.6%.
The Cost of Debt of Yihai International Holding Ltd (1579.HK) is 5%.

RangeSelected
Cost of equity9.1% - 12.1%10.6%
Tax rate27.9% - 28.4%28.15%
Cost of debt5.0% - 5.0%5%
WACC9.1% - 12.1%10.6%
WACC

1579.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta1.051.18
Additional risk adjustments0.0%0.5%
Cost of equity9.1%12.1%
Tax rate27.9%28.4%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC9.1%12.1%
Selected WACC10.6%

1579.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 1579.HK:

cost_of_equity (10.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.05) + 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.