3333.HK WACC - Weighted Average Cost of Capital

The WACC of China Evergrande Group (3333.HK) is 12.8%.

The Cost of Equity of China Evergrande Group (3333.HK) is 124.20%.

The Cost of Debt of China Evergrande Group (3333.HK) is 15.95%.

	Range	Selected
Cost of equity	67.20% - 181.20%	124.20%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	9.00% - 22.90%	15.95%
WACC	7.2% - 18.3%	12.8%

WACC

3333.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	10.76	25.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	67.20%	181.20%

Tax rate	22.10%	22.30%
Debt/Equity ratio	303.84	303.84
Cost of debt	9.00%	22.90%

After-tax WACC	7.2%	18.3%


Selected WACC	12.8%

3333.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 3333.HK:

cost_of_equity (124.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (10.76) + 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.