CLEU
China Liberal Education Holdings Ltd
Price:  
1.03 
USD
Volume:  
757,778
China | Diversified Consumer Services

CLEU WACC - Weighted Average Cost of Capital

The WACC of China Liberal Education Holdings Ltd (CLEU) is 6.4%.

The Cost of Equity of China Liberal Education Holdings Ltd (CLEU) is 7%.
The Cost of Debt of China Liberal Education Holdings Ltd (CLEU) is 7%.

RangeSelected
Cost of equity6.0% - 8.0%7%
Tax rate23.2% - 25.7%24.45%
Cost of debt7.0% - 7.0%7%
WACC5.8% - 7.1%6.4%
WACC

CLEU WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.460.56
Additional risk adjustments0.0%0.5%
Cost of equity6.0%8.0%
Tax rate23.2%25.7%
Debt/Equity ratio
0.470.47
Cost of debt7.0%7.0%
After-tax WACC5.8%7.1%
Selected WACC6.4%

CLEU'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 CLEU:

cost_of_equity (7.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.46) + 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.