681.HK
Chinese People Holdings Company Ltd
Price:  
0.04 
HKD
Volume:  
1,244,323
China | Oil, Gas & Consumable Fuels

681.HK WACC - Weighted Average Cost of Capital

The WACC of Chinese People Holdings Company Ltd (681.HK) is 5.6%.

The Cost of Equity of Chinese People Holdings Company Ltd (681.HK) is 6.35%.
The Cost of Debt of Chinese People Holdings Company Ltd (681.HK) is 4.25%.

RangeSelected
Cost of equity5.2% - 7.5%6.35%
Tax rate13.5% - 14.9%14.2%
Cost of debt4.0% - 4.5%4.25%
WACC4.7% - 6.5%5.6%
WACC

681.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.390.52
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.5%
Tax rate13.5%14.9%
Debt/Equity ratio
0.380.38
Cost of debt4.0%4.5%
After-tax WACC4.7%6.5%
Selected WACC5.6%

681.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 681.HK:

cost_of_equity (6.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.