182.HK WACC - Weighted Average Cost of Capital

The WACC of Concord New Energy Group Ltd (182.HK) is 7.0%.

The Cost of Equity of Concord New Energy Group Ltd (182.HK) is 13.35%.

The Cost of Debt of Concord New Energy Group Ltd (182.HK) is 6.50%.

	Range	Selected
Cost of equity	7.10% - 19.60%	13.35%
Tax rate	11.90% - 13.60%	12.75%
Cost of debt	4.90% - 8.10%	6.50%
WACC	4.8% - 9.2%	7.0%

WACC

182.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.71	2.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	19.60%

Tax rate	11.90%	13.60%
Debt/Equity ratio	4.73	4.73
Cost of debt	4.90%	8.10%

After-tax WACC	4.8%	9.2%


Selected WACC	7.0%

182.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 182.HK:

cost_of_equity (13.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.