230.HK WACC - Weighted Average Cost of Capital

The WACC of Minmetals Land Ltd (230.HK) is 5.2%.

The Cost of Equity of Minmetals Land Ltd (230.HK) is 15.25%.

The Cost of Debt of Minmetals Land Ltd (230.HK) is 6.05%.

	Range	Selected
Cost of equity	11.90% - 18.60%	15.25%
Tax rate	37.60% - 42.70%	40.15%
Cost of debt	5.10% - 7.00%	6.05%
WACC	4.4% - 6.0%	5.2%

WACC

230.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.51	2.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	18.60%

Tax rate	37.60%	42.70%
Debt/Equity ratio	6.48	6.48
Cost of debt	5.10%	7.00%

After-tax WACC	4.4%	6.0%


Selected WACC	5.2%

230.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 230.HK:

cost_of_equity (15.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.51) + 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.