The WACC of Tiande Chemical Holdings Ltd (609.HK) is 6.6%.
Range | Selected | |
Cost of equity | 5.8% - 9.1% | 7.45% |
Tax rate | 26.3% - 28.0% | 27.15% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.3% - 8.0% | 6.6% |
Category | Low | High |
Long-term bond rate | 2.9% | 3.4% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.49 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.8% | 9.1% |
Tax rate | 26.3% | 28.0% |
Debt/Equity ratio | 0.23 | 0.23 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.3% | 8.0% |
Selected WACC | 6.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
609.HK | Tiande Chemical Holdings Ltd | 0.23 | 0.21 | 0.18 |
1084.HK | Green Future Food Hydrocolloid Marine Science Co Ltd | 0.91 | 0.36 | 0.22 |
1561.HK | Pan Asia Data Holdings Inc | 1.61 | -1.06 | -0.48 |
1932.HK | CPM Group Ltd | 1.2 | -0.01 | 0 |
2341.HK | Ecogreen International Group Ltd | 1.84 | 0.18 | 0.08 |
300437.SZ | Henan Qingshuiyuan Technology Co Ltd | 0.32 | 1.32 | 1.07 |
336.HK | Huabao International Holdings Ltd | 0.03 | 1.01 | 0.99 |
4999.T | Cemedine Co Ltd | 0.02 | 1.01 | 0.99 |
701.HK | CNT Group Ltd | 0.36 | 0.29 | 0.23 |
MAXVIL.NS | Max Ventures and Industries Ltd | 0.27 | 1.72 | 1.44 |
Low | High | |
Unlevered beta | 0.2 | 0.54 |
Relevered beta | 0.24 | 0.63 |
Adjusted relevered beta | 0.49 | 0.75 |
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 609.HK:
cost_of_equity (7.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.