3669.HK WACC - Weighted Average Cost of Capital

The WACC of China Yongda Automobiles Services Holdings Ltd (3669.HK) is 7.5%.

The Cost of Equity of China Yongda Automobiles Services Holdings Ltd (3669.HK) is 8.85%.

The Cost of Debt of China Yongda Automobiles Services Holdings Ltd (3669.HK) is 8.25%.

	Range	Selected
Cost of equity	7.50% - 10.20%	8.85%
Tax rate	23.00% - 24.60%	23.80%
Cost of debt	5.10% - 11.40%	8.25%
WACC	5.7% - 9.4%	7.5%

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	0.77	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.20%

Tax rate	23.00%	24.60%
Debt/Equity ratio	1.03	1.03
Cost of debt	5.10%	11.40%

After-tax WACC	5.7%	9.4%


Selected WACC	7.5%

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 (8.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.77) + 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.