359.HK WACC - Weighted Average Cost of Capital

The WACC of China Haisheng Juice Holdings Co Ltd (359.HK) is 5.3%.

The Cost of Equity of China Haisheng Juice Holdings Co Ltd (359.HK) is 14.65%.

The Cost of Debt of China Haisheng Juice Holdings Co Ltd (359.HK) is 5.80%.

	Range	Selected
Cost of equity	4.00% - 25.30%	14.65%
Tax rate	7.00% - 11.10%	9.05%
Cost of debt	4.60% - 7.00%	5.80%
WACC	4.2% - 6.4%	5.3%

WACC

359.HK WACC calculation

Category	Low	High

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

Additional risk adjustments	18.5%	19.0%
Cost of equity	4.00%	25.30%

Tax rate	7.00%	11.10%
Debt/Equity ratio	83.62	83.62
Cost of debt	4.60%	7.00%

After-tax WACC	4.2%	6.4%


Selected WACC	5.3%

359.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 359.HK:

cost_of_equity (14.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (-2.9) + risk_adjustments (18.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.