6123.HK WACC - Weighted Average Cost of Capital
The WACC of YTO Express (International) Holdings Ltd (6123.HK) is 5.6%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.7% | 5.7% |
| Tax rate | 10.6% - 12.0% | 11.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.5% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.31 | 0.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.7% |
| Tax rate | 10.6% | 12.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.5% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6123.HK | YTO Express (International) Holdings Ltd | 0.09 | 0.91 | 0.84 |
| 1737.HK | A & S Group (Holdings) Limited | 0.09 | 0.31 | 0.29 |
| 2130.HK | CN Logistics International Holdings Ltd | 0.46 | 0.15 | 0.11 |
| 2608.TW | Kerry TJ Logistics Co Ltd | 0.49 | 0.14 | 0.1 |
| 6083.HK | World-Link Logistics (Asia) Holding Ltd | 0.42 | 0.04 | 0.03 |
| 8035.HK | Janco Holdings Ltd | 1.44 | -0.22 | -0.1 |
| 8482.HK | Wan Leader International Ltd | 0.06 | -0.29 | -0.27 |
| BTJ.SI | A-Sonic Aerospace Ltd | 0.08 | -0.25 | -0.23 |
| GWCS.QA | Gulf Warehousing Company QPSC | 1.23 | 0.22 | 0.11 |
| KSC.AX | K&S Corporation Ltd | 0.14 | -0.23 | -0.2 |
| Low | High | |
| Unlevered beta | -0.02 | 0.1 |
| Relevered beta | -0.03 | 0.1 |
| Adjusted relevered beta | 0.31 | 0.4 |
6123.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 6123.HK:
cost_of_equity (5.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.31) + 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.