6836.HK WACC - Weighted Average Cost of Capital

The WACC of Tianyun International Holdings Ltd (6836.HK) is 7.6%.

The Cost of Equity of Tianyun International Holdings Ltd (6836.HK) is 7.70%.

The Cost of Debt of Tianyun International Holdings Ltd (6836.HK) is 4.75%.

	Range	Selected
Cost of equity	6.60% - 8.80%	7.70%
Tax rate	22.30% - 25.50%	23.90%
Cost of debt	4.00% - 5.50%	4.75%
WACC	6.5% - 8.7%	7.6%

WACC

6836.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.62	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.80%

Tax rate	22.30%	25.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	5.50%

After-tax WACC	6.5%	8.7%


Selected WACC	7.6%

6836.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 6836.HK:

cost_of_equity (7.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.