6100.HK WACC - Weighted Average Cost of Capital
The WACC of Tongdao Liepin Group (6100.HK) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.4% - 10.8% | 9.6% |
| Tax rate | 12.7% - 15.2% | 13.95% |
| Cost of debt | 4.0% - 5.3% | 4.65% |
| WACC | 8.0% - 10.3% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.93 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 10.8% |
| Tax rate | 12.7% | 15.2% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 5.3% |
| After-tax WACC | 8.0% | 10.3% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6100.HK | Tongdao Liepin Group | 0.08 | 2.43 | 2.27 |
| 1357.HK | Meitu Inc | 0.01 | 1.91 | 1.89 |
| 1753.HK | Duiba Group Ltd | 3.92 | 1.55 | 0.35 |
| 1761.HK | BabyTree Group | 0.05 | 0.97 | 0.93 |
| 2159.T | Full Speed Inc | 0.06 | 0.81 | 0.77 |
| 300494.SZ | Hubei Century Network Technology Inc | 0 | 1.75 | 1.75 |
| 3601.HK | 360 Ludashi Holdings Ltd | 0.01 | 0.77 | 0.76 |
| 3906.T | Albert Inc | 0 | 1.19 | 1.19 |
| 543.HK | Pacific Online Ltd | 0 | 0.9 | 0.9 |
| 6027.T | Bengo4.com Inc | 0.04 | 0.68 | 0.66 |
| 82.HK | V1 Group Ltd | 0.06 | 0.91 | 0.87 |
| Low | High | |
| Unlevered beta | 0.87 | 0.93 |
| Relevered beta | 0.9 | 0.99 |
| Adjusted relevered beta | 0.93 | 0.99 |
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 (9.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.93) + 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.