267.HK
CITIC Ltd
Price:  
10.78 
HKD
Volume:  
25,578,386.00
China | Industrial Conglomerates
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267.HK WACC - Weighted Average Cost of Capital

The WACC of CITIC Ltd (267.HK) is 5.8%.

The Cost of Equity of CITIC Ltd (267.HK) is 19.00%.
The Cost of Debt of CITIC Ltd (267.HK) is 5.00%.

Range Selected
Cost of equity 12.40% - 25.60% 19.00%
Tax rate 17.10% - 17.20% 17.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 6.5% 5.8%
WACC

267.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.6 3.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.40% 25.60%
Tax rate 17.10% 17.20%
Debt/Equity ratio 7.95 7.95
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 6.5%
Selected WACC 5.8%

267.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 267.HK:

cost_of_equity (19.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.6) + 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.