2313.HK WACC - Weighted Average Cost of Capital

The WACC of Shenzhou International Group Holdings Ltd (2313.HK) is 9.5%.

The Cost of Equity of Shenzhou International Group Holdings Ltd (2313.HK) is 10.45%.

The Cost of Debt of Shenzhou International Group Holdings Ltd (2313.HK) is 4.25%.

	Range	Selected
Cost of equity	9.00% - 11.90%	10.45%
Tax rate	10.60% - 12.20%	11.40%
Cost of debt	4.00% - 4.50%	4.25%
WACC	8.2% - 10.8%	9.5%

WACC

2313.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.02	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.90%

Tax rate	10.60%	12.20%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	4.50%

After-tax WACC	8.2%	10.8%


Selected WACC	9.5%

2313.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 2313.HK:

cost_of_equity (10.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.