815.HK WACC - Weighted Average Cost of Capital

The WACC of China Silver Group Ltd (815.HK) is 8.5%.

The Cost of Equity of China Silver Group Ltd (815.HK) is 9.35%.

The Cost of Debt of China Silver Group Ltd (815.HK) is 6.80%.

	Range	Selected
Cost of equity	8.30% - 10.40%	9.35%
Tax rate	2.60% - 8.50%	5.55%
Cost of debt	6.50% - 7.10%	6.80%
WACC	7.8% - 9.3%	8.5%

WACC

815.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	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.40%

Tax rate	2.60%	8.50%
Debt/Equity ratio	0.39	0.39
Cost of debt	6.50%	7.10%

After-tax WACC	7.8%	9.3%


Selected WACC	8.5%

815.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 815.HK:

cost_of_equity (9.35%) = 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.