6100.HK WACC - Weighted Average Cost of Capital

The WACC of Tongdao Liepin Group (6100.HK) is 9.3%.

The Cost of Equity of Tongdao Liepin Group (6100.HK) is 9.70%.

The Cost of Debt of Tongdao Liepin Group (6100.HK) is 4.65%.

	Range	Selected
Cost of equity	8.50% - 10.90%	9.70%
Tax rate	12.70% - 15.20%	13.95%
Cost of debt	4.00% - 5.30%	4.65%
WACC	8.1% - 10.5%	9.3%

WACC

6100.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.94	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	10.90%

Tax rate	12.70%	15.20%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	5.30%

After-tax WACC	8.1%	10.5%


Selected WACC	9.3%

6100.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 6100.HK:

cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.94) + 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.