3669.HK WACC - Weighted Average Cost of Capital

The WACC of China Yongda Automobiles Services Holdings Ltd (3669.HK) is 6.4%.

The Cost of Equity of China Yongda Automobiles Services Holdings Ltd (3669.HK) is 12.60%.

The Cost of Debt of China Yongda Automobiles Services Holdings Ltd (3669.HK) is 6.15%.

	Range	Selected
Cost of equity	7.80% - 17.40%	12.60%
Tax rate	20.80% - 22.40%	21.60%
Cost of debt	5.30% - 7.00%	6.15%
WACC	4.9% - 7.9%	6.4%

WACC

3669.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.82	1.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	17.40%

Tax rate	20.80%	22.40%
Debt/Equity ratio	3.93	3.93
Cost of debt	5.30%	7.00%

After-tax WACC	4.9%	7.9%


Selected WACC	6.4%

3669.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 3669.HK:

cost_of_equity (12.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.82) + 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.