1847.HK WACC - Weighted Average Cost of Capital

The WACC of YCIH Green High Performance Concrete Co Ltd (1847.HK) is 6.1%.

The Cost of Equity of YCIH Green High Performance Concrete Co Ltd (1847.HK) is 29.75%.

The Cost of Debt of YCIH Green High Performance Concrete Co Ltd (1847.HK) is 5.90%.

	Range	Selected
Cost of equity	20.00% - 39.50%	29.75%
Tax rate	21.60% - 24.70%	23.15%
Cost of debt	4.80% - 7.00%	5.90%
WACC	4.8% - 7.4%	6.1%

WACC

1847.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	2.86	5.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.00%	39.50%

Tax rate	21.60%	24.70%
Debt/Equity ratio	15.15	15.15
Cost of debt	4.80%	7.00%

After-tax WACC	4.8%	7.4%


Selected WACC	6.1%

1847.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 1847.HK:

cost_of_equity (29.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.86) + 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.