910.HK WACC - Weighted Average Cost of Capital

The WACC of China Sandi Holdings Ltd (910.HK) is 8.9%.

The Cost of Equity of China Sandi Holdings Ltd (910.HK) is 14.00%.

The Cost of Debt of China Sandi Holdings Ltd (910.HK) is 14.70%.

	Range	Selected
Cost of equity	6.50% - 21.50%	14.00%
Tax rate	36.20% - 40.60%	38.40%
Cost of debt	6.50% - 22.90%	14.70%
WACC	4.2% - 13.6%	8.9%

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	0.61	2.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	21.50%

Tax rate	36.20%	40.60%
Debt/Equity ratio	107.87	107.87
Cost of debt	6.50%	22.90%

After-tax WACC	4.2%	13.6%


Selected WACC	8.9%

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 (14.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.