1798.HK WACC - Weighted Average Cost of Capital
The WACC of China Datang Corp Renewable Power Co Ltd (1798.HK) is 6.5%.
| Range | Selected | |
| Cost of equity | 14.0% - 17.1% | 15.55% |
| Tax rate | 14.4% - 15.2% | 14.8% |
| Cost of debt | 4.1% - 6.5% | 5.3% |
| WACC | 5.4% - 7.6% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.86 | 1.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.0% | 17.1% |
| Tax rate | 14.4% | 15.2% |
| Debt/Equity ratio | 4.59 | 4.59 |
| Cost of debt | 4.1% | 6.5% |
| After-tax WACC | 5.4% | 7.6% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1798.HK | China Datang Corp Renewable Power Co Ltd | 4.59 | 0.67 | 0.14 |
| 000591.SZ | CECEP Solar Energy Co Ltd | 1.28 | 1.09 | 0.52 |
| 000791.SZ | GEPIC Energy Development Co Ltd | 0.82 | 0.79 | 0.47 |
| 000862.SZ | Ning Xia Yin Xing Energy Co Ltd | 0.48 | 1.04 | 0.74 |
| 002039.SZ | Guizhou Qianyuan Power Co Ltd | 1.15 | 0.67 | 0.34 |
| 600163.SS | Zhongmin Energy Co Ltd | 0.35 | 0.61 | 0.47 |
| 601016.SS | CECEP Wind-Power Corp | 1.25 | 1.01 | 0.49 |
| 601619.SS | Ningxia Jiaze Renewables Corp Ltd | 1.44 | 1.04 | 0.47 |
| 601778.SS | Jinko Power Technology Co Ltd | 2.08 | 1.26 | 0.45 |
| 603693.SS | Jiangsu New Energy Development Co Ltd | 0.76 | 1.03 | 0.63 |
| Low | High | |
| Unlevered beta | 0.47 | 0.48 |
| Relevered beta | 2.28 | 2.34 |
| Adjusted relevered beta | 1.86 | 1.9 |
1798.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 1798.HK:
cost_of_equity (15.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.86) + 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.