6169.HK WACC - Weighted Average Cost of Capital
The WACC of China Yuhua Education Corp Ltd (6169.HK) is 9.0%.
| Range | Selected | |
| Cost of equity | 10.6% - 14.9% | 12.75% |
| Tax rate | 0.7% - 1.2% | 0.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.7% - 10.3% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.29 | 1.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 14.9% |
| Tax rate | 0.7% | 1.2% |
| Debt/Equity ratio | 0.79 | 0.79 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.7% | 10.3% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6169.HK | China Yuhua Education Corp Ltd | 0.79 | 0.79 | 0.44 |
| 000526.SZ | Xiamen Unigroup Xue Co Ltd | 0.19 | 1.34 | 1.13 |
| 003032.SZ | Jiangsu Chuanzhiboke Education Technology Co Ltd | 0.02 | 1.11 | 1.08 |
| 1765.HK | Hope Education Group Co Ltd | 4.25 | 1.24 | 0.24 |
| 1773.HK | Tianli Education International Holdings Ltd | 0.34 | 1.19 | 0.89 |
| 1797.HK | Koolearn Technology Holding Ltd | 0.01 | 2.04 | 2.02 |
| 1890.HK | China Kepei Education Group Ltd | 0.36 | 0.91 | 0.67 |
| 3978.HK | China Beststudy Education Group | 0.06 | 1.08 | 1.02 |
| 600661.SS | Shanghai Xinnanyang Only Education & Technology Co Ltd | 0.12 | 1.31 | 1.17 |
| 6068.HK | Wisdom Education International Holdings Company Ltd | 1.19 | 0.77 | 0.35 |
| Low | High | |
| Unlevered beta | 0.8 | 1.04 |
| Relevered beta | 1.43 | 1.87 |
| Adjusted relevered beta | 1.29 | 1.58 |
6169.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 6169.HK:
cost_of_equity (12.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.29) + 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.