1799.HK WACC - Weighted Average Cost of Capital

The WACC of Xinte Energy Co Ltd (1799.HK) is 5.8%.

The Cost of Equity of Xinte Energy Co Ltd (1799.HK) is 14.15%.

The Cost of Debt of Xinte Energy Co Ltd (1799.HK) is 5.00%.

	Range	Selected
Cost of equity	9.20% - 19.10%	14.15%
Tax rate	11.70% - 14.80%	13.25%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.1% - 6.5%	5.8%

WACC

1799.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.06	2.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	19.10%

Tax rate	11.70%	14.80%
Debt/Equity ratio	5.49	5.49
Cost of debt	5.00%	5.00%

After-tax WACC	5.1%	6.5%


Selected WACC	5.8%

1799.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 1799.HK:

cost_of_equity (14.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.06) + 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.