2858.HK WACC - Weighted Average Cost of Capital

The WACC of Yixin Group Ltd (2858.HK) is 5.6%.

The Cost of Equity of Yixin Group Ltd (2858.HK) is 8.45%.

The Cost of Debt of Yixin Group Ltd (2858.HK) is 6.30%.

	Range	Selected
Cost of equity	5.80% - 11.10%	8.45%
Tax rate	24.10% - 27.40%	25.75%
Cost of debt	4.50% - 8.10%	6.30%
WACC	4.0% - 7.2%	5.6%

WACC

2858.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.49	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	11.10%

Tax rate	24.10%	27.40%
Debt/Equity ratio	2.91	2.91
Cost of debt	4.50%	8.10%

After-tax WACC	4.0%	7.2%


Selected WACC	5.6%

2858.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 2858.HK:

cost_of_equity (8.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.