8111.HK WACC - Weighted Average Cost of Capital

The WACC of China Technology Industry Group Ltd (8111.HK) is 6.1%.

The Cost of Equity of China Technology Industry Group Ltd (8111.HK) is 7.10%.

The Cost of Debt of China Technology Industry Group Ltd (8111.HK) is 5.00%.

	Range	Selected
Cost of equity	4.90% - 9.30%	7.10%
Tax rate	2.50% - 5.60%	4.05%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.9% - 7.3%	6.1%

WACC

8111.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.33	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	9.30%

Tax rate	2.50%	5.60%
Debt/Equity ratio	0.78	0.78
Cost of debt	5.00%	5.00%

After-tax WACC	4.9%	7.3%


Selected WACC	6.1%

8111.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 8111.HK:

cost_of_equity (7.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.