8109.HK WACC - Weighted Average Cost of Capital

The WACC of Kirin Group Holdings Ltd (8109.HK) is 7.5%.

The Cost of Equity of Kirin Group Holdings Ltd (8109.HK) is 8.30%.

The Cost of Debt of Kirin Group Holdings Ltd (8109.HK) is 7.25%.

	Range	Selected
Cost of equity	6.00% - 10.60%	8.30%
Tax rate	0.80% - 1.20%	1.00%
Cost of debt	7.00% - 7.50%	7.25%
WACC	6.7% - 8.2%	7.5%

WACC

8109.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.52	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	10.60%

Tax rate	0.80%	1.20%
Debt/Equity ratio	2.94	2.94
Cost of debt	7.00%	7.50%

After-tax WACC	6.7%	8.2%


Selected WACC	7.5%

8109.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 8109.HK:

cost_of_equity (8.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.52) + 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.