1798.HK WACC - Weighted Average Cost of Capital

The WACC of China Datang Corp Renewable Power Co Ltd (1798.HK) is 6.5%.

The Cost of Equity of China Datang Corp Renewable Power Co Ltd (1798.HK) is 15.55%.

The Cost of Debt of China Datang Corp Renewable Power Co Ltd (1798.HK) is 5.30%.

	Range	Selected
Cost of equity	14.00% - 17.10%	15.55%
Tax rate	14.40% - 15.20%	14.80%
Cost of debt	4.10% - 6.50%	5.30%
WACC	5.4% - 7.6%	6.5%

WACC

1798.HK WACC calculation

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	14.00%	17.10%

Tax rate	14.40%	15.20%
Debt/Equity ratio	4.59	4.59
Cost of debt	4.10%	6.50%

After-tax WACC	5.4%	7.6%


Selected WACC	6.5%

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.