975.HK WACC - Weighted Average Cost of Capital

The WACC of Mongolian Mining Corp (975.HK) is 9.5%.

The Cost of Equity of Mongolian Mining Corp (975.HK) is 10.00%.

The Cost of Debt of Mongolian Mining Corp (975.HK) is 10.20%.

	Range	Selected
Cost of equity	8.60% - 11.40%	10.00%
Tax rate	19.90% - 27.90%	23.90%
Cost of debt	6.50% - 13.90%	10.20%
WACC	7.9% - 11.1%	9.5%

WACC

975.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.96	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	11.40%

Tax rate	19.90%	27.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	6.50%	13.90%

After-tax WACC	7.9%	11.1%


Selected WACC	9.5%

975.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 975.HK:

cost_of_equity (10.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.96) + 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.