451.HK WACC - Weighted Average Cost of Capital

The WACC of GCL New Energy Holdings Ltd (451.HK) is 11.8%.

The Cost of Equity of GCL New Energy Holdings Ltd (451.HK) is 6.20%.

The Cost of Debt of GCL New Energy Holdings Ltd (451.HK) is 18.30%.

	Range	Selected
Cost of equity	5.40% - 7.00%	6.20%
Tax rate	1.80% - 4.80%	3.30%
Cost of debt	7.00% - 29.60%	18.30%
WACC	6.1% - 17.4%	11.8%

WACC

451.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.42	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.00%

Tax rate	1.80%	4.80%
Debt/Equity ratio	0.97	0.97
Cost of debt	7.00%	29.60%

After-tax WACC	6.1%	17.4%


Selected WACC	11.8%

451.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 451.HK:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.