2113.HK WACC - Weighted Average Cost of Capital

The WACC of Century Group International Holdings Ltd (2113.HK) is 7.0%.

The Cost of Equity of Century Group International Holdings Ltd (2113.HK) is 7.05%.

The Cost of Debt of Century Group International Holdings Ltd (2113.HK) is 6.80%.

	Range	Selected
Cost of equity	5.70% - 8.40%	7.05%
Tax rate	0.40% - 2.10%	1.25%
Cost of debt	6.80% - 6.80%	6.80%
WACC	5.9% - 8.1%	7.0%

WACC

2113.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.48	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.40%

Tax rate	0.40%	2.10%
Debt/Equity ratio	0.17	0.17
Cost of debt	6.80%	6.80%

After-tax WACC	5.9%	8.1%


Selected WACC	7.0%

2113.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 2113.HK:

cost_of_equity (7.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.