3382.HK WACC - Weighted Average Cost of Capital

The WACC of Tianjin Port Development Holdings Ltd (3382.HK) is 6.1%.

The Cost of Equity of Tianjin Port Development Holdings Ltd (3382.HK) is 10.50%.

The Cost of Debt of Tianjin Port Development Holdings Ltd (3382.HK) is 4.25%.

	Range	Selected
Cost of equity	8.80% - 12.20%	10.50%
Tax rate	21.60% - 21.80%	21.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.4% - 6.9%	6.1%

WACC

3382.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	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.20%

Tax rate	21.60%	21.80%
Debt/Equity ratio	1.57	1.57
Cost of debt	4.00%	4.50%

After-tax WACC	5.4%	6.9%


Selected WACC	6.1%

3382.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 3382.HK:

cost_of_equity (10.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1) + 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.