9986.HK
Dashan Education Holdings Ltd
Price:  
1.36 
HKD
Volume:  
1,214,000
China | Educational Services

9986.HK WACC - Weighted Average Cost of Capital

The WACC of Dashan Education Holdings Ltd (9986.HK) is 6.5%.

The Cost of Equity of Dashan Education Holdings Ltd (9986.HK) is 6.55%.
The Cost of Debt of Dashan Education Holdings Ltd (9986.HK) is 5.5%.

RangeSelected
Cost of equity5.2% - 7.9%6.55%
Tax rate1.6% - 1.9%1.75%
Cost of debt4.0% - 7.0%5.5%
WACC5.1% - 7.9%6.5%
WACC

9986.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.380.58
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.9%
Tax rate1.6%1.9%
Debt/Equity ratio
0.020.02
Cost of debt4.0%7.0%
After-tax WACC5.1%7.9%
Selected WACC6.5%

9986.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 9986.HK:

cost_of_equity (6.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.