6828.HK WACC - Weighted Average Cost of Capital

The WACC of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 10.7%.

The Cost of Equity of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 7.90%.

The Cost of Debt of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 13.70%.

	Range	Selected
Cost of equity	6.40% - 9.40%	7.90%
Tax rate	5.80% - 15.30%	10.55%
Cost of debt	4.50% - 22.90%	13.70%
WACC	4.8% - 16.7%	10.7%

WACC

6828.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.59	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.40%

Tax rate	5.80%	15.30%
Debt/Equity ratio	2.72	2.72
Cost of debt	4.50%	22.90%

After-tax WACC	4.8%	16.7%


Selected WACC	10.7%

6828.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 6828.HK:

cost_of_equity (7.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.