3680.HK WACC - Weighted Average Cost of Capital

The WACC of Suoxinda Holdings Ltd (3680.HK) is 9.6%.

The Cost of Equity of Suoxinda Holdings Ltd (3680.HK) is 10.05%.

The Cost of Debt of Suoxinda Holdings Ltd (3680.HK) is 7.05%.

	Range	Selected
Cost of equity	8.00% - 12.10%	10.05%
Tax rate	3.30% - 4.30%	3.80%
Cost of debt	7.00% - 7.10%	7.05%
WACC	7.9% - 11.4%	9.6%

WACC

3680.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.86	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	12.10%

Tax rate	3.30%	4.30%
Debt/Equity ratio	0.15	0.15
Cost of debt	7.00%	7.10%

After-tax WACC	7.9%	11.4%


Selected WACC	9.6%

3680.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 3680.HK:

cost_of_equity (10.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.