3639.HK WACC - Weighted Average Cost of Capital

The WACC of Yida China Holdings Ltd (3639.HK) is 8.0%.

The Cost of Equity of Yida China Holdings Ltd (3639.HK) is 125.55%.

The Cost of Debt of Yida China Holdings Ltd (3639.HK) is 7.85%.

	Range	Selected
Cost of equity	69.30% - 181.80%	125.55%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	7.00% - 8.70%	7.85%
WACC	6.4% - 9.5%	8.0%

WACC

3639.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	11.11	25.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	69.30%	181.80%

Tax rate	22.10%	22.30%
Debt/Equity ratio	63.59	63.59
Cost of debt	7.00%	8.70%

After-tax WACC	6.4%	9.5%


Selected WACC	8.0%

3639.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 3639.HK:

cost_of_equity (125.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (11.11) + 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.