6098.HK WACC - Weighted Average Cost of Capital

The WACC of Country Garden Services Holdings Co Ltd (6098.HK) is 9.7%.

The Cost of Equity of Country Garden Services Holdings Co Ltd (6098.HK) is 10.65%.

The Cost of Debt of Country Garden Services Holdings Co Ltd (6098.HK) is 4.25%.

	Range	Selected
Cost of equity	9.30% - 12.00%	10.65%
Tax rate	28.50% - 32.50%	30.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	8.5% - 10.9%	9.7%

WACC

6098.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.08	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.00%

Tax rate	28.50%	32.50%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.00%	4.50%

After-tax WACC	8.5%	10.9%


Selected WACC	9.7%

6098.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 6098.HK:

cost_of_equity (10.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.08) + 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.