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 27.80%.

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

	Range	Selected
Cost of equity	19.10% - 36.50%	27.80%
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	2.71	4.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.10%	36.50%

Tax rate	26.20%	31.00%
Debt/Equity ratio	13.54	13.54
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 (27.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.71) + 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.