1818.HK WACC - Weighted Average Cost of Capital

The WACC of Zhaojin Mining Industry Co Ltd (1818.HK) is 8.6%.

The Cost of Equity of Zhaojin Mining Industry Co Ltd (1818.HK) is 9.70%.

The Cost of Debt of Zhaojin Mining Industry Co Ltd (1818.HK) is 4.45%.

	Range	Selected
Cost of equity	8.30% - 11.10%	9.70%
Tax rate	22.60% - 24.80%	23.70%
Cost of debt	4.10% - 4.80%	4.45%
WACC	7.4% - 9.8%	8.6%

WACC

1818.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.9	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.10%

Tax rate	22.60%	24.80%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.10%	4.80%

After-tax WACC	7.4%	9.8%


Selected WACC	8.6%

1818.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 1818.HK:

cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.9) + 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.