2025.HK WACC - Weighted Average Cost of Capital
The WACC of Ruifeng Power Group Company Ltd (2025.HK) is 9.9%.
| Range | Selected | |
| Cost of equity | 7.8% - 13.1% | 10.45% |
| Tax rate | 11.8% - 12.3% | 12.05% |
| Cost of debt | 4.4% - 5.1% | 4.75% |
| WACC | 7.4% - 12.3% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.82 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 13.1% |
| Tax rate | 11.8% | 12.3% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.4% | 5.1% |
| After-tax WACC | 7.4% | 12.3% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2025.HK | Ruifeng Power Group Company Ltd | 0.1 | 0.17 | 0.16 |
| 000622.SZ | Hengli Industrial Development Group Co Ltd | 0.8 | 0.17 | 0.1 |
| 300585.SZ | NanJing AoLian AE&EA Co Ltd | 0.02 | 1.57 | 1.54 |
| 300611.SZ | Zhejiang Meili High Technology Co Ltd | 0.11 | 1.46 | 1.33 |
| 300652.SZ | Hang Zhou Radical Energy-Saving Technology Co Ltd | 0.02 | 1.66 | 1.63 |
| 300742.SZ | Nanjing YueBoo Power System Co Ltd | 41.71 | 1.41 | 0.04 |
| 603037.SS | Shanghai Carthane Co Ltd | 0.05 | 1.04 | 0.99 |
| 603286.SS | Jiangsu Riying Electronics Co Ltd | 0.15 | 1.59 | 1.41 |
| 603917.SS | Ningbo Heli Mould Technology Co Ltd | 0.02 | 1.53 | 1.5 |
| 6162.HK | China Tianrui Automotive Interiors Co Ltd | 0.74 | 0.33 | 0.2 |
| Low | High | |
| Unlevered beta | 0.68 | 1.36 |
| Relevered beta | 0.73 | 1.48 |
| Adjusted relevered beta | 0.82 | 1.32 |
2025.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 2025.HK:
cost_of_equity (10.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.82) + 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.