3311.HK WACC - Weighted Average Cost of Capital

The WACC of China State Construction International Holdings Ltd (3311.HK) is 4.5%.

The Cost of Equity of China State Construction International Holdings Ltd (3311.HK) is 6.40%.

The Cost of Debt of China State Construction International Holdings Ltd (3311.HK) is 4.40%.

	Range	Selected
Cost of equity	5.40% - 7.40%	6.40%
Tax rate	21.20% - 21.70%	21.45%
Cost of debt	4.30% - 4.50%	4.40%
WACC	4.1% - 4.8%	4.5%

WACC

3311.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.42	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.40%

Tax rate	21.20%	21.70%
Debt/Equity ratio	1.92	1.92
Cost of debt	4.30%	4.50%

After-tax WACC	4.1%	4.8%


Selected WACC	4.5%

3311.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 3311.HK:

cost_of_equity (6.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.