8260.HK WACC - Weighted Average Cost of Capital

The WACC of Yin He Holdings Ltd (8260.HK) is 150.8%.

The Cost of Equity of Yin He Holdings Ltd (8260.HK) is 11.00%.

The Cost of Debt of Yin He Holdings Ltd (8260.HK) is 332.55%.

	Range	Selected
Cost of equity	8.90% - 13.10%	11.00%
Tax rate	12.20% - 15.00%	13.60%
Cost of debt	7.00% - 658.10%	332.55%
WACC	7.5% - 294.2%	150.8%

WACC

8260.HK WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.3%	6.3%
Adjusted beta	1.1	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	13.10%

Tax rate	12.20%	15.00%
Debt/Equity ratio	1.06	1.06
Cost of debt	7.00%	658.10%

After-tax WACC	7.5%	294.2%


Selected WACC	150.8%

8260.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 8260.HK:

cost_of_equity (11.00%) = risk_free_rate (3.25%) + equity_risk_premium (5.80%) * adjusted_beta (1.1) + 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.