3799.HK WACC - Weighted Average Cost of Capital
The WACC of Dali Foods Group Co Ltd (3799.HK) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.3% | 8.25% |
| Tax rate | 25.0% - 25.3% | 25.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.7% - 8.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.72 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.3% |
| Tax rate | 25.0% | 25.3% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.7% | 8.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3799.HK | Dali Foods Group Co Ltd | 0.12 | 0.39 | 0.35 |
| 002299.SZ | Fujian Sunner Development Co Ltd | 0.39 | 1.24 | 0.96 |
| 002726.SZ | Shandong Longda Meat Foodstuff Co Ltd | 0.51 | 0.89 | 0.65 |
| 151.HK | Want Want China Holdings Ltd | 0.1 | 0.34 | 0.32 |
| 220.HK | Uni-President China Holdings Ltd | 0.01 | 0.54 | 0.54 |
| 600073.SS | Shanghai Maling Aquarius Co Ltd | 0.51 | 0.71 | 0.52 |
| 600298.SS | Angel Yeast Co Ltd | 0.21 | 0.49 | 0.42 |
| 600597.SS | Bright Dairy and Food Co Ltd | 0.3 | 0.99 | 0.81 |
| 600737.SS | COFCO Sugar Holding Co Ltd | 0.23 | 0.71 | 0.6 |
| 600873.SS | MeiHua Holdings Group Co Ltd | 0.17 | 0.86 | 0.76 |
| Low | High | |
| Unlevered beta | 0.53 | 0.62 |
| Relevered beta | 0.58 | 0.67 |
| Adjusted relevered beta | 0.72 | 0.78 |
3799.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 3799.HK:
cost_of_equity (8.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.72) + 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.