300033.SZ
Hithink RoyalFlush Information Network Co Ltd
Price:  
276.45 
CNY
Volume:  
16,855,320.00
China | Capital Markets
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300033.SZ WACC - Weighted Average Cost of Capital

The WACC of Hithink RoyalFlush Information Network Co Ltd (300033.SZ) is 7.5%.

The Cost of Equity of Hithink RoyalFlush Information Network Co Ltd (300033.SZ) is 10.35%.
The Cost of Debt of Hithink RoyalFlush Information Network Co Ltd (300033.SZ) is 5.00%.

Range Selected
Cost of equity 8.90% - 11.80% 10.35%
Tax rate 7.00% - 7.60% 7.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 8.2% 7.5%
WACC

300033.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.02 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.80%
Tax rate 7.00% 7.60%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 8.2%
Selected WACC 7.5%

300033.SZ'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 300033.SZ:

cost_of_equity (10.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * 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.