1028.HK
C.banner International Holdings Ltd
Price:  
0.25 
HKD
Volume:  
204,000
China | Textiles, Apparel & Luxury Goods

1028.HK WACC - Weighted Average Cost of Capital

The WACC of C.banner International Holdings Ltd (1028.HK) is 8.6%.

The Cost of Equity of C.banner International Holdings Ltd (1028.HK) is 8.75%.
The Cost of Debt of C.banner International Holdings Ltd (1028.HK) is 6%.

RangeSelected
Cost of equity6.2% - 11.3%8.75%
Tax rate22.1% - 22.3%22.2%
Cost of debt4.0% - 8.0%6%
WACC6.1% - 11.1%8.6%
WACC

1028.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.561.06
Additional risk adjustments0.0%0.5%
Cost of equity6.2%11.3%
Tax rate22.1%22.3%
Debt/Equity ratio
0.040.04
Cost of debt4.0%8.0%
After-tax WACC6.1%11.1%
Selected WACC8.6%

1028.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 1028.HK:

cost_of_equity (8.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.