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CNFinance Holdings Limited American Depositary Shares, each representing two hundred (200) Ordinary Shares (CNF) — WACC Analysis

WACC Breakdown

CNFinance Holdings Limited American Depositary Shares, each representing two hundred (200) Ordinary Shares (CNF) has a weighted average cost of capital (WACC) of 20.0%. The cost of equity is 7.0%, derived from a beta of 0.32 and a risk-free rate of 4.7%. The after-tax cost of debt is 243.4%. The capital structure is 55.5% equity and 44.5% debt.

Interpretation

A WACC of 20.0% indicates that the market perceives CNFinance Holdings Limited American Depositary Shares, each representing two hundred (200) Ordinary Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare CNF's WACC of 20.0% against industry peers to gauge its relative financing costs. A beta of 0.32 reflects the stock's volatility relative to the broader market.

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VALUATION

CNF WACC: 20.00% for CNFinance Holdings Limited American Depositary Shares, each representing two hundred (200) Ordinary Shares

Current inputs imply a 6.98% cost of equity and a 243.44% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

CNFinance Holdings Limited American Depositary Shares, each representing two hundred (200) Ordinary Shares Common Stock (CNF) WACC Results
Weighted Average Cost of Capital
20.00%
Cost of Equity
6.98%
Risk-Free Rate4.67%
Beta0.32
Market Risk Premium4.23%
Cost of Debt
243.44%
Pre-Tax Cost of Debt243.44%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 55.50%($36.58M)
Debt: 44.50%($29.33M)
Equity Component
3.88%
55.50% × 6.98%
Debt Component
108.32%
44.50% × 243.44%

CNFinance Holdings Limited American Depositary Shares, each representing two hundred (200) Ordinary Shares (CNF) WACC in context

CNFinance Holdings Limited American Depositary Shares, each representing two hundred (200) Ordinary Shares (CNF) currently screens with an estimated WACC of 20.00%. That blends a 6.98% cost of equity, a 243.44% pre-tax cost of debt, and a 55.50% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What CNF WACC implies

A 20.00% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates CNF

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.32 and equity accounts for 55.50% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.