1759.HK WACC - Weighted Average Cost of Capital

The WACC of Sino Gas Holdings Group Ltd (1759.HK) is 4.2%.

The Cost of Equity of Sino Gas Holdings Group Ltd (1759.HK) is 6.65%.

The Cost of Debt of Sino Gas Holdings Group Ltd (1759.HK) is 5.55%.

	Range	Selected
Cost of equity	5.40% - 7.90%	6.65%
Tax rate	31.50% - 34.90%	33.20%
Cost of debt	4.10% - 7.00%	5.55%
WACC	3.3% - 5.2%	4.2%

WACC

1759.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.43	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.90%

Tax rate	31.50%	34.90%
Debt/Equity ratio	4.53	4.53
Cost of debt	4.10%	7.00%

After-tax WACC	3.3%	5.2%


Selected WACC	4.2%

1759.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 1759.HK:

cost_of_equity (6.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.