910.HK WACC - Weighted Average Cost of Capital

The WACC of China Sandi Holdings Ltd (910.HK) is 4.4%.

The Cost of Equity of China Sandi Holdings Ltd (910.HK) is 65.85%.

The Cost of Debt of China Sandi Holdings Ltd (910.HK) is 5.30%.

	Range	Selected
Cost of equity	46.80% - 84.90%	65.85%
Tax rate	15.60% - 28.30%	21.95%
Cost of debt	4.10% - 6.50%	5.30%
WACC	3.7% - 5.1%	4.4%

WACC

910.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	7.34	11.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	46.80%	84.90%

Tax rate	15.60%	28.30%
Debt/Equity ratio	175.19	175.19
Cost of debt	4.10%	6.50%

After-tax WACC	3.7%	5.1%


Selected WACC	4.4%

910.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 910.HK:

cost_of_equity (65.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (7.34) + 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.