6828.HK
Beijing Gas Blue Sky Holdings Ltd
Price:  
0.05 
HKD
Volume:  
6,248,000
Hong Kong | Gas Utilities

6828.HK WACC - Weighted Average Cost of Capital

The WACC of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 10.1%.

The Cost of Equity of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 7.2%.
The Cost of Debt of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 13.45%.

RangeSelected
Cost of equity5.7% - 8.7%7.2%
Tax rate5.8% - 15.3%10.55%
Cost of debt4.0% - 22.9%13.45%
WACC4.4% - 15.8%10.1%
WACC

6828.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.480.7
Additional risk adjustments0.0%0.5%
Cost of equity5.7%8.7%
Tax rate5.8%15.3%
Debt/Equity ratio
1.991.99
Cost of debt4.0%22.9%
After-tax WACC4.4%15.8%
Selected WACC10.1%

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 (7.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.