691.HK WACC - Weighted Average Cost of Capital

The WACC of China Shanshui Cement Group Ltd (691.HK) is 10.7%.

The Cost of Equity of China Shanshui Cement Group Ltd (691.HK) is 10.10%.

The Cost of Debt of China Shanshui Cement Group Ltd (691.HK) is 15.95%.

	Range	Selected
Cost of equity	8.30% - 11.90%	10.10%
Tax rate	26.40% - 33.10%	29.75%
Cost of debt	9.00% - 22.90%	15.95%
WACC	7.1% - 14.4%	10.7%

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	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.90%

Tax rate	26.40%	33.10%
Debt/Equity ratio	2.73	2.73
Cost of debt	9.00%	22.90%

After-tax WACC	7.1%	14.4%


Selected WACC	10.7%

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 (10.10%) = 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.