909.HK WACC - Weighted Average Cost of Capital

The WACC of Ming Yuan Cloud Group Holdings Ltd (909.HK) is 11.6%.

The Cost of Equity of Ming Yuan Cloud Group Holdings Ltd (909.HK) is 11.75%.

The Cost of Debt of Ming Yuan Cloud Group Holdings Ltd (909.HK) is 6.20%.

	Range	Selected
Cost of equity	10.50% - 13.00%	11.75%
Tax rate	1.20% - 2.00%	1.60%
Cost of debt	5.40% - 7.00%	6.20%
WACC	10.4% - 12.9%	11.6%

WACC

909.HK WACC calculation

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	10.50%	13.00%

Tax rate	1.20%	2.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.40%	7.00%

After-tax WACC	10.4%	12.9%


Selected WACC	11.6%

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.