499.HK WACC - Weighted Average Cost of Capital

The WACC of Qingdao Holdings International Ltd (499.HK) is 4.9%.

The Cost of Equity of Qingdao Holdings International Ltd (499.HK) is 5.70%.

The Cost of Debt of Qingdao Holdings International Ltd (499.HK) is 5.50%.

	Range	Selected
Cost of equity	4.90% - 6.50%	5.70%
Tax rate	15.90% - 19.70%	17.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.8% - 5.9%	4.9%

WACC

499.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.33	0.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	6.50%

Tax rate	15.90%	19.70%
Debt/Equity ratio	2.1	2.1
Cost of debt	4.00%	7.00%

After-tax WACC	3.8%	5.9%


Selected WACC	4.9%

499.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 499.HK:

cost_of_equity (5.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.