230.HK WACC - Weighted Average Cost of Capital

The WACC of Minmetals Land Ltd (230.HK) is 3.9%.

The Cost of Equity of Minmetals Land Ltd (230.HK) is 9.90%.

The Cost of Debt of Minmetals Land Ltd (230.HK) is 5.90%.

	Range	Selected
Cost of equity	5.80% - 14.00%	9.90%
Tax rate	37.60% - 42.70%	40.15%
Cost of debt	4.80% - 7.00%	5.90%
WACC	3.2% - 4.7%	3.9%

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	0.49	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	14.00%

Tax rate	37.60%	42.70%
Debt/Equity ratio	14.4	14.4
Cost of debt	4.80%	7.00%

After-tax WACC	3.2%	4.7%


Selected WACC	3.9%

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 (9.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.