332.HK
Yuan Heng Gas Holdings Ltd
Price:  
0.02 
HKD
Volume:  
13,932,000
Hong Kong | Oil, Gas & Consumable Fuels

332.HK WACC - Weighted Average Cost of Capital

The WACC of Yuan Heng Gas Holdings Ltd (332.HK) is 6.1%.

The Cost of Equity of Yuan Heng Gas Holdings Ltd (332.HK) is 22.75%.
The Cost of Debt of Yuan Heng Gas Holdings Ltd (332.HK) is 6.5%.

RangeSelected
Cost of equity16.2% - 29.3%22.75%
Tax rate28.7% - 34.3%31.5%
Cost of debt6.0% - 7.0%6.5%
WACC5.4% - 6.9%6.1%
WACC

332.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta2.233.64
Additional risk adjustments0.0%0.5%
Cost of equity16.2%29.3%
Tax rate28.7%34.3%
Debt/Equity ratio
9.929.92
Cost of debt6.0%7.0%
After-tax WACC5.4%6.9%
Selected WACC6.1%

332.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 332.HK:

cost_of_equity (22.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.23) + 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.