611.HK WACC - Weighted Average Cost of Capital
The WACC of China Nuclear Energy Technology Corp Ltd (611.HK) is 5.8%.
| Range | Selected | |
| Cost of equity | 12.3% - 22.6% | 17.45% |
| Tax rate | 24.1% - 25.5% | 24.8% |
| Cost of debt | 4.0% - 8.1% | 6.05% |
| WACC | 3.9% - 7.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.58 | 2.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.3% | 22.6% |
| Tax rate | 24.1% | 25.5% |
| Debt/Equity ratio | 9.49 | 9.49 |
| Cost of debt | 4.0% | 8.1% |
| After-tax WACC | 3.9% | 7.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 611.HK | China Nuclear Energy Technology Corp Ltd | 9.49 | 0.74 | 0.09 |
| 1427.HK | China Tianbao Group Development Co Ltd | 7.16 | 0.1 | 0.01 |
| 1556.HK | Chinney Kin Wing Holdings Ltd | 0 | 0.22 | 0.22 |
| 1559.HK | Kwan On Holdings Ltd | 0.04 | 0.83 | 0.8 |
| 1627.HK | Able Engineering Holdings Ltd | 0 | 0.28 | 0.28 |
| 1826.HK | Steering Holdings Ltd | 0.12 | 0.88 | 0.81 |
| 3728.HK | Ching Lee Holdings Ltd | 3.65 | 0.88 | 0.24 |
| 687.HK | Tysan Holdings Ltd | 0.2 | 0.76 | 0.66 |
| 8053.HK | Pizu Group Holdings Ltd | 0.37 | -0.11 | -0.09 |
| HDG.VN | Ha Do Group JSC | 0.56 | 1.25 | 0.88 |
| Low | High | |
| Unlevered beta | 0.23 | 0.43 |
| Relevered beta | 1.87 | 3.51 |
| Adjusted relevered beta | 1.58 | 2.68 |
611.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 611.HK:
cost_of_equity (17.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.58) + 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.