6058.HK WACC - Weighted Average Cost of Capital

The WACC of China Industrial Securities International Financial Group Ltd (6058.HK) is 8.1%.

The Cost of Equity of China Industrial Securities International Financial Group Ltd (6058.HK) is 11.05%.

The Cost of Debt of China Industrial Securities International Financial Group Ltd (6058.HK) is 9.30%.

	Range	Selected
Cost of equity	8.40% - 13.70%	11.05%
Tax rate	14.20% - 19.10%	16.65%
Cost of debt	4.00% - 14.60%	9.30%
WACC	4.1% - 12.1%	8.1%

WACC

6058.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.92	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	13.70%

Tax rate	14.20%	19.10%
Debt/Equity ratio	6.42	6.42
Cost of debt	4.00%	14.60%

After-tax WACC	4.1%	12.1%


Selected WACC	8.1%

6058.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 6058.HK:

cost_of_equity (11.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.92) + 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.