6828.HK WACC - Weighted Average Cost of Capital
The WACC of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 10.8%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.5% | 7.9% |
| Tax rate | 5.8% - 15.3% | 10.55% |
| Cost of debt | 4.5% - 22.9% | 13.7% |
| WACC | 4.8% - 16.8% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.58 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.5% |
| Tax rate | 5.8% | 15.3% |
| Debt/Equity ratio | 2.79 | 2.79 |
| Cost of debt | 4.5% | 22.9% |
| After-tax WACC | 4.8% | 16.8% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6828.HK | Beijing Gas Blue Sky Holdings Ltd | 2.79 | 1.83 | 0.51 |
| 034590.KS | Incheon City Gas Co Ltd | 0.17 | 0.08 | 0.07 |
| 1083.HK | Towngas China Company Ltd | 1.45 | 0.44 | 0.19 |
| 1193.HK | China Resources Gas Group Ltd | 0.46 | 0.56 | 0.4 |
| 384.HK | China Gas Holdings Ltd | 1.52 | 0.82 | 0.34 |
| 392.HK | Beijing Enterprises Holdings Ltd | 1.89 | 0.58 | 0.21 |
| 603.HK | China Oil and Gas Group Ltd | 10.87 | 0.4 | 0.04 |
| 9537.T | Hokuriku Gas Co Ltd | 0.07 | 0.13 | 0.12 |
| 9908.TW | Great Taipei Gas Corp | 0 | -0.01 | -0.01 |
| RTGZ.ME | Gazprom Gazoraspredeleniye Rostov-Na-Donu PAO | 0.6 | 0.1 | 0.07 |
| Low | High | |
| Unlevered beta | 0.1 | 0.2 |
| Relevered beta | 0.37 | 0.72 |
| Adjusted relevered beta | 0.58 | 0.81 |
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 (0.58) + 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.