809.HK WACC - Weighted Average Cost of Capital
The WACC of Global Bio-chem Technology Group Co Ltd (809.HK) is 8.8%.
| Range | Selected | |
| Cost of equity | 17.5% - 33.1% | 25.3% |
| Tax rate | 2.4% - 3.2% | 2.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.3% - 11.4% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 2.44 | 4.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.5% | 33.1% |
| Tax rate | 2.4% | 3.2% |
| Debt/Equity ratio | 4.73 | 4.73 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.3% | 11.4% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 809.HK | Global Bio-chem Technology Group Co Ltd | 4.73 | -0.31 | -0.06 |
| 000702.SZ | Hunan Zhenghong Science and Technology Develop Co Ltd | 0.12 | 1.25 | 1.12 |
| 002852.SZ | Daodaoquan Grain and Oil Co Ltd | 0.31 | 1.26 | 0.97 |
| 300268.SZ | Joyvio Agriculture Development Co Ltd | 3.17 | 0.9 | 0.22 |
| 300505.SZ | Kunming Chuan Jin Nuo Chemical Co Ltd | 0.15 | 1.37 | 1.2 |
| 3839.HK | Chia Tai Enterprises International Ltd | 0.61 | 1.26 | 0.8 |
| 43.HK | C.P. Pokphand Co. Ltd | 0.46 | 0.27 | 0.18 |
| 6010.SR | National Agriculture Development Company SJSC | 0.04 | 1.29 | 1.25 |
| 904.HK | China Green (Holdings) Ltd | 45.48 | 0.32 | 0.01 |
| GAEL.NS | Gujarat Ambuja Exports Ltd | 0.04 | 1.21 | 1.17 |
| Low | High | |
| Unlevered beta | 0.57 | 1.03 |
| Relevered beta | 3.15 | 5.75 |
| Adjusted relevered beta | 2.44 | 4.18 |
809.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 809.HK:
cost_of_equity (25.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.44) + 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.