931.HK WACC - Weighted Average Cost of Capital
The WACC of China LNG Group Ltd (931.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.1% | 6.7% |
| Tax rate | 0.9% - 1.7% | 1.3% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.8% - 7.7% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.41 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.1% |
| Tax rate | 0.9% | 1.7% |
| Debt/Equity ratio | 0.54 | 0.54 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.8% | 7.7% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 931.HK | China LNG Group Ltd | 0.54 | 0.53 | 0.34 |
| 002259.SZ | Sichuan Shengda Forestry Industry Co Ltd | 0.05 | 0.65 | 0.62 |
| 1621.HK | Vico International Holdings Ltd | 0.42 | 0.48 | 0.34 |
| 2728.HK | Jintai Energy Holdings Ltd | 1.41 | 0.53 | 0.22 |
| 332.HK | Yuan Heng Gas Holdings Ltd | 10.39 | 0.25 | 0.02 |
| 554.HK | Hans Energy Co Ltd | 2.99 | 0.31 | 0.08 |
| PGS.VN | Southern Gas Trading JSC | 0.35 | -0.15 | -0.11 |
| PSTC.BK | Power Solution Technologies PCL | 1.01 | 0 | 0 |
| SGP.BK | Siamgas and Petrochemicals PCL | 2.26 | 0.22 | 0.07 |
| WP.BK | WP Energy PCL | 0.22 | 0.53 | 0.44 |
| Low | High | |
| Unlevered beta | 0.07 | 0.27 |
| Relevered beta | 0.12 | 0.42 |
| Adjusted relevered beta | 0.41 | 0.61 |
931.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 931.HK:
cost_of_equity (6.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.