9916.HK WACC - Weighted Average Cost of Capital

The WACC of Xingye Wulian Service Group Co Ltd (9916.HK) is 9.4%.

The Cost of Equity of Xingye Wulian Service Group Co Ltd (9916.HK) is 9.50%.

The Cost of Debt of Xingye Wulian Service Group Co Ltd (9916.HK) is 5.00%.

	Range	Selected
Cost of equity	7.80% - 11.20%	9.50%
Tax rate	26.90% - 27.80%	27.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.7% - 11.1%	9.4%

WACC

9916.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.82	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	11.20%

Tax rate	26.90%	27.80%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.00%	5.00%

After-tax WACC	7.7%	11.1%


Selected WACC	9.4%

9916.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 9916.HK:

cost_of_equity (9.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.82) + 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.