2188.HK WACC - Weighted Average Cost of Capital

The WACC of China Titans Energy Technology Group Co Ltd (2188.HK) is 7.9%.

The Cost of Equity of China Titans Energy Technology Group Co Ltd (2188.HK) is 9.05%.

The Cost of Debt of China Titans Energy Technology Group Co Ltd (2188.HK) is 6.55%.

	Range	Selected
Cost of equity	7.80% - 10.30%	9.05%
Tax rate	10.70% - 12.00%	11.35%
Cost of debt	6.10% - 7.00%	6.55%
WACC	7.0% - 8.8%	7.9%

WACC

2188.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.83	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.30%

Tax rate	10.70%	12.00%
Debt/Equity ratio	0.53	0.53
Cost of debt	6.10%	7.00%

After-tax WACC	7.0%	8.8%


Selected WACC	7.9%

2188.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 2188.HK:

cost_of_equity (9.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + 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.