909.HK WACC - Weighted Average Cost of Capital
The WACC of Ming Yuan Cloud Group Holdings Ltd (909.HK) is 11.6%.
| Range | Selected | |
| Cost of equity | 10.5% - 13.0% | 11.75% |
| Tax rate | 1.2% - 2.0% | 1.6% |
| Cost of debt | 5.4% - 7.0% | 6.2% |
| WACC | 10.4% - 12.9% | 11.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.27 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 13.0% |
| Tax rate | 1.2% | 2.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.4% | 7.0% |
| After-tax WACC | 10.4% | 12.9% |
| Selected WACC | 11.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 909.HK | Ming Yuan Cloud Group Holdings Ltd | 0.02 | 3.09 | 3.04 |
| 002230.SZ | Iflytek Co Ltd | 0.1 | 1.24 | 1.13 |
| 300352.SZ | Beijing VRV Software Corp Ltd | 0.04 | 1.79 | 1.72 |
| 300365.SZ | Beijing Forever Technology Co Ltd | 0.02 | 1.52 | 1.49 |
| 300768.SZ | Hangzhou DPtech Technologies Co Ltd | 0 | 1.43 | 1.43 |
| 300845.SZ | Zhengzhou J&T Hi-Tech Co Ltd | 0.01 | 1.43 | 1.41 |
| 3888.HK | Kingsoft Corp Ltd | 0.06 | 1.25 | 1.17 |
| 601360.SS | 360 Security Technology Inc | 0.03 | 1.18 | 1.15 |
| 603232.SS | Koal Software Co Ltd | 0.02 | 1.36 | 1.33 |
| 603927.SS | Sinosoft Co Ltd | 0.04 | 1.51 | 1.46 |
| TATAELXSI.NS | Tata Elxsi Ltd | 0.01 | 1.49 | 1.49 |
| Low | High | |
| Unlevered beta | 1.41 | 1.46 |
| Relevered beta | 1.4 | 1.46 |
| Adjusted relevered beta | 1.27 | 1.31 |
909.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 909.HK:
cost_of_equity (11.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.27) + 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.