245.HK
China Vered Financial Holding Corporation Ltd
Price:  
0.06 
HKD
Volume:  
381,426,000.00
Hong Kong | Capital Markets
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245.HK WACC - Weighted Average Cost of Capital

The WACC of China Vered Financial Holding Corporation Ltd (245.HK) is 6.2%.

The Cost of Equity of China Vered Financial Holding Corporation Ltd (245.HK) is 6.25%.
The Cost of Debt of China Vered Financial Holding Corporation Ltd (245.HK) is 5.50%.

Range Selected
Cost of equity 5.20% - 7.30% 6.25%
Tax rate 16.90% - 24.70% 20.80%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.2% - 7.3% 6.2%
WACC

245.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.39 0.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 7.30%
Tax rate 16.90% 24.70%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 7.00%
After-tax WACC 5.2% 7.3%
Selected WACC 6.2%

245.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 245.HK:

cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.