8170.HK WACC - Weighted Average Cost of Capital

The WACC of China All Nation International Holdings Group Ltd (8170.HK) is 7.2%.

The Cost of Equity of China All Nation International Holdings Group Ltd (8170.HK) is 6.50%.

The Cost of Debt of China All Nation International Holdings Group Ltd (8170.HK) is 14.60%.

	Range	Selected
Cost of equity	5.50% - 7.50%	6.50%
Tax rate	38.70% - 48.10%	43.40%
Cost of debt	14.60% - 14.60%	14.60%
WACC	6.8% - 7.6%	7.2%

WACC

8170.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.35	0.45

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.50%	7.50%

Tax rate	38.70%	48.10%
Debt/Equity ratio	0.59	0.59
Cost of debt	14.60%	14.60%

After-tax WACC	6.8%	7.6%


Selected WACC	7.2%

8170.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 8170.HK:

cost_of_equity (6.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.