997.HK
Chinlink International Holdings Ltd
Price:  
0.03 
HKD
Volume:  
456,800.00
Hong Kong | Trading Companies & Distributors
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

997.HK WACC - Weighted Average Cost of Capital

The WACC of Chinlink International Holdings Ltd (997.HK) is 11.2%.

The Cost of Equity of Chinlink International Holdings Ltd (997.HK) is 134.30%.
The Cost of Debt of Chinlink International Holdings Ltd (997.HK) is 9.90%.

Range Selected
Cost of equity 104.90% - 163.70% 134.30%
Tax rate 7.20% - 9.60% 8.40%
Cost of debt 8.40% - 11.40% 9.90%
WACC 9.5% - 12.9% 11.2%
WACC

997.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 17.07 22.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 104.90% 163.70%
Tax rate 7.20% 9.60%
Debt/Equity ratio 57.44 57.44
Cost of debt 8.40% 11.40%
After-tax WACC 9.5% 12.9%
Selected WACC 11.2%

997.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 997.HK:

cost_of_equity (134.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (17.07) + 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.