3623.HK
China Success Finance Group Holdings Ltd
Price:  
1.16 
HKD
Volume:  
590,000
Hong Kong | Diversified Financial Services

3623.HK WACC - Weighted Average Cost of Capital

The WACC of China Success Finance Group Holdings Ltd (3623.HK) is 6.0%.

The Cost of Equity of China Success Finance Group Holdings Ltd (3623.HK) is 6.25%.
The Cost of Debt of China Success Finance Group Holdings Ltd (3623.HK) is 5.8%.

RangeSelected
Cost of equity5.4% - 7.1%6.25%
Tax rate5.4% - 14.9%10.15%
Cost of debt4.6% - 7.0%5.8%
WACC5.2% - 6.8%6.0%
WACC

3623.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.350.38
Additional risk adjustments0.5%1.0%
Cost of equity5.4%7.1%
Tax rate5.4%14.9%
Debt/Equity ratio
0.310.31
Cost of debt4.6%7.0%
After-tax WACC5.2%6.8%
Selected WACC6.0%

3623.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 3623.HK:

cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + risk_adjustments (0.75%)

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