6117.HK WACC - Weighted Average Cost of Capital

The WACC of Rizhao Port Jurong Co Ltd (6117.HK) is 8.2%.

The Cost of Equity of Rizhao Port Jurong Co Ltd (6117.HK) is 9.15%.

The Cost of Debt of Rizhao Port Jurong Co Ltd (6117.HK) is 6.25%.

	Range	Selected
Cost of equity	7.80% - 10.50%	9.15%
Tax rate	25.20% - 25.30%	25.25%
Cost of debt	4.00% - 8.50%	6.25%
WACC	6.7% - 9.6%	8.2%

WACC

6117.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.82	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.50%

Tax rate	25.20%	25.30%
Debt/Equity ratio	0.28	0.28
Cost of debt	4.00%	8.50%

After-tax WACC	6.7%	9.6%


Selected WACC	8.2%

6117.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 6117.HK:

cost_of_equity (9.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.82) + 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.