3302.HK WACC - Weighted Average Cost of Capital

The WACC of Kinergy Corporation Ltd (3302.HK) is 8.8%.

The Cost of Equity of Kinergy Corporation Ltd (3302.HK) is 14.10%.

The Cost of Debt of Kinergy Corporation Ltd (3302.HK) is 5.65%.

	Range	Selected
Cost of equity	12.10% - 16.10%	14.10%
Tax rate	8.80% - 14.40%	11.60%
Cost of debt	4.30% - 7.00%	5.65%
WACC	7.4% - 10.2%	8.8%

WACC

3302.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.54	1.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	16.10%

Tax rate	8.80%	14.40%
Debt/Equity ratio	1.39	1.39
Cost of debt	4.30%	7.00%

After-tax WACC	7.4%	10.2%


Selected WACC	8.8%

3302.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 3302.HK:

cost_of_equity (14.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.54) + 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.