1848.HK
China Aircraft Leasing Group Holdings Ltd
Price:  
4.18 
HKD
Volume:  
476,500
Hong Kong | Trading Companies & Distributors

1848.HK WACC - Weighted Average Cost of Capital

The WACC of China Aircraft Leasing Group Holdings Ltd (1848.HK) is 8.6%.

The Cost of Equity of China Aircraft Leasing Group Holdings Ltd (1848.HK) is 13.25%.
The Cost of Debt of China Aircraft Leasing Group Holdings Ltd (1848.HK) is 10.55%.

RangeSelected
Cost of equity7.5% - 19.0%13.25%
Tax rate22.1% - 22.3%22.2%
Cost of debt6.5% - 14.6%10.55%
WACC5.2% - 11.9%8.6%
WACC

1848.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.782.17
Additional risk adjustments0.0%0.5%
Cost of equity7.5%19.0%
Tax rate22.1%22.3%
Debt/Equity ratio
14.4714.47
Cost of debt6.5%14.6%
After-tax WACC5.2%11.9%
Selected WACC8.6%

1848.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 1848.HK:

cost_of_equity (13.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.78) + 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.