629.HK WACC - Weighted Average Cost of Capital

The WACC of Yue Da International Holdings Ltd (629.HK) is 7.4%.

The Cost of Equity of Yue Da International Holdings Ltd (629.HK) is 8.30%.

The Cost of Debt of Yue Da International Holdings Ltd (629.HK) is 8.05%.

	Range	Selected
Cost of equity	6.80% - 9.80%	8.30%
Tax rate	40.30% - 41.50%	40.90%
Cost of debt	4.30% - 11.80%	8.05%
WACC	5.8% - 9.1%	7.4%

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	0.66	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.80%

Tax rate	40.30%	41.50%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.30%	11.80%

After-tax WACC	5.8%	9.1%


Selected WACC	7.4%

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 (8.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.66) + 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.