1699.HK WACC - Weighted Average Cost of Capital
The WACC of China Putian Food Holding Ltd (1699.HK) is 6.4%.
| Range | Selected | |
| Cost of equity | 13.3% - 19.5% | 16.4% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.9% - 8.0% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.74 | 2.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.3% | 19.5% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 4.61 | 4.61 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.9% | 8.0% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1699.HK | China Putian Food Holding Ltd | 4.61 | 0.1 | 0.02 |
| 000798.SZ | CNFC Overseas Fisheries Co Ltd | 1.4 | 1.03 | 0.49 |
| 002124.SZ | Tech-bank Food Co Ltd | 0.92 | 0.75 | 0.44 |
| 1610.HK | COFCO Joycome Foods Ltd | 1.05 | 0.86 | 0.48 |
| 2924.T | Ifuji Sangyo Co Ltd | 0.12 | 0.44 | 0.4 |
| 300106.SZ | Xinjiang Western Animal Husbandry Co Ltd | 0.09 | 1.46 | 1.37 |
| 600257.SS | Dahu Aquaculture Co Ltd | 0.32 | 1.11 | 0.89 |
| 600275.SS | Hubei Wuchangyu Co Ltd | 0.05 | 0.85 | 0.82 |
| 603336.SS | Great-Sun Foods Co Ltd | 0.23 | 1.07 | 0.91 |
| PWF.KL | PWF Corporation Bhd | 0.29 | 0.48 | 0.39 |
| Low | High | |
| Unlevered beta | 0.46 | 0.62 |
| Relevered beta | 2.1 | 2.85 |
| Adjusted relevered beta | 1.74 | 2.24 |
1699.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 1699.HK:
cost_of_equity (16.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.74) + 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.