8356.HK
CNC Holdings Ltd
Price:  
0.52 
HKD
Volume:  
8,400.00
Hong Kong | Construction & Engineering
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8356.HK WACC - Weighted Average Cost of Capital

The WACC of CNC Holdings Ltd (8356.HK) is 4.7%.

The Cost of Equity of CNC Holdings Ltd (8356.HK) is 5.05%.
The Cost of Debt of CNC Holdings Ltd (8356.HK) is 5.00%.

Range Selected
Cost of equity 3.60% - 6.50% 5.05%
Tax rate 5.20% - 6.30% 5.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.6% - 4.8% 4.7%
WACC

8356.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.11 0.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 3.60% 6.50%
Tax rate 5.20% 6.30%
Debt/Equity ratio 10.18 10.18
Cost of debt 5.00% 5.00%
After-tax WACC 4.6% 4.8%
Selected WACC 4.7%

8356.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 8356.HK:

cost_of_equity (5.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.11) + 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.