959.HK WACC - Weighted Average Cost of Capital

The WACC of Century Entertainment International Holdings Ltd (959.HK) is 6.1%.

The Cost of Equity of Century Entertainment International Holdings Ltd (959.HK) is 9.60%.

The Cost of Debt of Century Entertainment International Holdings Ltd (959.HK) is 5.00%.

	Range	Selected
Cost of equity	7.50% - 11.70%	9.60%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.3% - 6.9%	6.1%

WACC

959.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.78	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	11.70%

Tax rate	22.10%	22.30%
Debt/Equity ratio	1.6	1.6
Cost of debt	5.00%	5.00%

After-tax WACC	5.3%	6.9%


Selected WACC	6.1%

959.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 959.HK:

cost_of_equity (9.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.78) + 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.