1697.HK
Shandong International Trust Co Ltd
Price:  
0.42 
HKD
Volume:  
297,000
China | Capital Markets

1697.HK WACC - Weighted Average Cost of Capital

The WACC of Shandong International Trust Co Ltd (1697.HK) is 10.0%.

The Cost of Equity of Shandong International Trust Co Ltd (1697.HK) is 10.65%.
The Cost of Debt of Shandong International Trust Co Ltd (1697.HK) is 9.2%.

RangeSelected
Cost of equity8.9% - 12.4%10.65%
Tax rate25.6% - 38.0%31.8%
Cost of debt7.0% - 11.4%9.2%
WACC8.4% - 11.7%10.0%
WACC

1697.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta1.011.22
Additional risk adjustments0.0%0.5%
Cost of equity8.9%12.4%
Tax rate25.6%38.0%
Debt/Equity ratio
0.160.16
Cost of debt7.0%11.4%
After-tax WACC8.4%11.7%
Selected WACC10.0%

1697.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 1697.HK:

cost_of_equity (10.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.01) + 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.