216.HK WACC - Weighted Average Cost of Capital

The WACC of Chinney Investments Ltd (216.HK) is 8.7%.

The Cost of Equity of Chinney Investments Ltd (216.HK) is 31.70%.

The Cost of Debt of Chinney Investments Ltd (216.HK) is 9.85%.

	Range	Selected
Cost of equity	12.70% - 50.70%	31.70%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	5.10% - 14.60%	9.85%
WACC	4.3% - 13.1%	8.7%

WACC

216.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.64	6.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	50.70%

Tax rate	22.10%	22.30%
Debt/Equity ratio	22.5	22.5
Cost of debt	5.10%	14.60%

After-tax WACC	4.3%	13.1%


Selected WACC	8.7%

216.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 216.HK:

cost_of_equity (31.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.64) + 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.