8430.HK WACC - Weighted Average Cost of Capital
The WACC of C&N Holdings Ltd (8430.HK) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.9% | 6.95% |
| Tax rate | 2.6% - 6.5% | 4.55% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 8.3% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.35 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.9% |
| Tax rate | 2.6% | 6.5% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 8.3% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8430.HK | C&N Holdings Ltd | 0.35 | 1.3 | 0.98 |
| 001140.KS | Kukbo Co Ltd | 1.22 | -0.26 | -0.12 |
| 002682.SZ | Longzhou Group Co Ltd | 1.33 | 1.35 | 0.59 |
| 542383.BO | Ritco Logistics Ltd | 0.54 | 0.92 | 0.61 |
| 9017.T | Niigata Kotsu Co Ltd | 3.34 | 0.15 | 0.04 |
| 9082.T | Daiwa Motor Transportation Co Ltd | 4.17 | 0.04 | 0.01 |
| AVG.NS | AVG Logistics Ltd | 0.51 | 1.16 | 0.78 |
| BLH.SI | Hai Leck Holdings Ltd | 0.03 | -0.13 | -0.13 |
| GTRK.ME | Globaltruck Management PAO | 0.19 | 0.01 | 0 |
| S61.SI | SBS Transit Ltd | 0.02 | 0.34 | 0.33 |
| Low | High | |
| Unlevered beta | 0.03 | 0.43 |
| Relevered beta | 0.03 | 0.58 |
| Adjusted relevered beta | 0.35 | 0.72 |
8430.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 8430.HK:
cost_of_equity (6.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + 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.