8536.HK
TL Natural Gas Holdings Ltd
Price:  
0.37 
HKD
Volume:  
295,000
China | Specialty Retail

8536.HK WACC - Weighted Average Cost of Capital

The WACC of TL Natural Gas Holdings Ltd (8536.HK) is 7.7%.

The Cost of Equity of TL Natural Gas Holdings Ltd (8536.HK) is 7.75%.
The Cost of Debt of TL Natural Gas Holdings Ltd (8536.HK) is 5.5%.

RangeSelected
Cost of equity5.4% - 10.1%7.75%
Tax rate5.0% - 5.7%5.35%
Cost of debt4.0% - 7.0%5.5%
WACC5.4% - 10.0%7.7%
WACC

8536.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.430.89
Additional risk adjustments0.0%0.5%
Cost of equity5.4%10.1%
Tax rate5.0%5.7%
Debt/Equity ratio
0.020.02
Cost of debt4.0%7.0%
After-tax WACC5.4%10.0%
Selected WACC7.7%

8536.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 8536.HK:

cost_of_equity (7.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.