6136.HK
Kangda International Environmental Company Ltd
Price:  
0.38 
HKD
Volume:  
1,045,000.00
China | Water Utilities
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6136.HK WACC - Weighted Average Cost of Capital

The WACC of Kangda International Environmental Company Ltd (6136.HK) is 6.4%.

The Cost of Equity of Kangda International Environmental Company Ltd (6136.HK) is 27.05%.
The Cost of Debt of Kangda International Environmental Company Ltd (6136.HK) is 6.80%.

Range Selected
Cost of equity 18.40% - 35.70% 27.05%
Tax rate 26.20% - 31.00% 28.60%
Cost of debt 5.50% - 8.10% 6.80%
WACC 5.1% - 7.7% 6.4%
WACC

6136.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 2.6 4.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 18.40% 35.70%
Tax rate 26.20% 31.00%
Debt/Equity ratio 13 13
Cost of debt 5.50% 8.10%
After-tax WACC 5.1% 7.7%
Selected WACC 6.4%

6136.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 6136.HK:

cost_of_equity (27.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.6) + 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.