2858.HK WACC - Weighted Average Cost of Capital

The WACC of Yixin Group Ltd (2858.HK) is 7.3%.

The Cost of Equity of Yixin Group Ltd (2858.HK) is 8.50%.

The Cost of Debt of Yixin Group Ltd (2858.HK) is 8.55%.

	Range	Selected
Cost of equity	7.20% - 9.80%	8.50%
Tax rate	22.40% - 24.00%	23.20%
Cost of debt	5.70% - 11.40%	8.55%
WACC	5.5% - 9.1%	7.3%

WACC

2858.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.73	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	9.80%

Tax rate	22.40%	24.00%
Debt/Equity ratio	1.68	1.68
Cost of debt	5.70%	11.40%

After-tax WACC	5.5%	9.1%


Selected WACC	7.3%

2858.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 2858.HK:

cost_of_equity (8.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.