691.HK WACC - Weighted Average Cost of Capital

The WACC of China Shanshui Cement Group Ltd (691.HK) is 9.9%.

The Cost of Equity of China Shanshui Cement Group Ltd (691.HK) is 10.60%.

The Cost of Debt of China Shanshui Cement Group Ltd (691.HK) is 14.15%.

	Range	Selected
Cost of equity	9.00% - 12.20%	10.60%
Tax rate	26.40% - 33.10%	29.75%
Cost of debt	5.40% - 22.90%	14.15%
WACC	5.3% - 14.5%	9.9%

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	1.03	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.20%

Tax rate	26.40%	33.10%
Debt/Equity ratio	2.79	2.79
Cost of debt	5.40%	22.90%

After-tax WACC	5.3%	14.5%


Selected WACC	9.9%

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 (10.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.03) + 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.