691.HK WACC - Weighted Average Cost of Capital

The WACC of China Shanshui Cement Group Ltd (691.HK) is 5.1%.

The Cost of Equity of China Shanshui Cement Group Ltd (691.HK) is 17.20%.

The Cost of Debt of China Shanshui Cement Group Ltd (691.HK) is 5.50%.

	Range	Selected
Cost of equity	8.30% - 26.10%	17.20%
Tax rate	35.80% - 45.70%	40.75%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.3% - 6.8%	5.1%

WACC

691.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.91	3.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	26.10%

Tax rate	35.80%	45.70%
Debt/Equity ratio	6.41	6.41
Cost of debt	4.00%	7.00%

After-tax WACC	3.3%	6.8%


Selected WACC	5.1%

691.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 691.HK:

cost_of_equity (17.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.