922.HK
Anxian Yuan China Holdings Ltd
Price:  
0.17 
HKD
Volume:  
1,740,000
Hong Kong | Diversified Consumer Services

922.HK WACC - Weighted Average Cost of Capital

The WACC of Anxian Yuan China Holdings Ltd (922.HK) is 7.2%.

The Cost of Equity of Anxian Yuan China Holdings Ltd (922.HK) is 7.35%.
The Cost of Debt of Anxian Yuan China Holdings Ltd (922.HK) is 4.25%.

RangeSelected
Cost of equity6.2% - 8.5%7.35%
Tax rate30.2% - 32.0%31.1%
Cost of debt4.0% - 4.5%4.25%
WACC6.1% - 8.2%7.2%
WACC

922.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.560.66
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.5%
Tax rate30.2%32.0%
Debt/Equity ratio
0.050.05
Cost of debt4.0%4.5%
After-tax WACC6.1%8.2%
Selected WACC7.2%

922.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 922.HK:

cost_of_equity (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.