581.HK
China Oriental Group Co Ltd
Price:  
1.53 
HKD
Volume:  
29,930,000.00
Hong Kong | Metals & Mining
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

581.HK WACC - Weighted Average Cost of Capital

The WACC of China Oriental Group Co Ltd (581.HK) is 9.5%.

The Cost of Equity of China Oriental Group Co Ltd (581.HK) is 7.35%.
The Cost of Debt of China Oriental Group Co Ltd (581.HK) is 11.95%.

Range Selected
Cost of equity 5.70% - 9.00% 7.35%
Tax rate 12.00% - 15.80% 13.90%
Cost of debt 4.00% - 19.90% 11.95%
WACC 4.0% - 15.0% 9.5%
WACC

581.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.47 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 9.00%
Tax rate 12.00% 15.80%
Debt/Equity ratio 3.58 3.58
Cost of debt 4.00% 19.90%
After-tax WACC 4.0% 15.0%
Selected WACC 9.5%

581.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 581.HK:

cost_of_equity (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.