6828.HK
Beijing Gas Blue Sky Holdings Ltd
Price:  
0.05 
HKD
Volume:  
29,088,000.00
Hong Kong | Gas Utilities
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6828.HK WACC - Weighted Average Cost of Capital

The WACC of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 10.5%.

The Cost of Equity of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 8.25%.
The Cost of Debt of Beijing Gas Blue Sky Holdings Ltd (6828.HK) is 13.45%.

Range Selected
Cost of equity 6.80% - 9.70% 8.25%
Tax rate 5.80% - 15.30% 10.55%
Cost of debt 4.00% - 22.90% 13.45%
WACC 4.8% - 16.2% 10.5%
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 0.67 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.70%
Tax rate 5.80% 15.30%
Debt/Equity ratio 2.07 2.07
Cost of debt 4.00% 22.90%
After-tax WACC 4.8% 16.2%
Selected WACC 10.5%

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 (8.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.67) + 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.