629.HK WACC - Weighted Average Cost of Capital

The WACC of Yue Da International Holdings Ltd (629.HK) is 5.6%.

The Cost of Equity of Yue Da International Holdings Ltd (629.HK) is 6.15%.

The Cost of Debt of Yue Da International Holdings Ltd (629.HK) is 8.50%.

	Range	Selected
Cost of equity	5.30% - 7.00%	6.15%
Tax rate	41.90% - 43.80%	42.85%
Cost of debt	4.00% - 13.00%	8.50%
WACC	4.0% - 7.2%	5.6%

WACC

629.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.42	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.00%

Tax rate	41.90%	43.80%
Debt/Equity ratio	0.86	0.86
Cost of debt	4.00%	13.00%

After-tax WACC	4.0%	7.2%


Selected WACC	5.6%

629.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 629.HK:

cost_of_equity (6.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.