1050.HK WACC - Weighted Average Cost of Capital

The WACC of Karrie International Holdings Ltd (1050.HK) is 7.4%.

The Cost of Equity of Karrie International Holdings Ltd (1050.HK) is 8.55%.

The Cost of Debt of Karrie International Holdings Ltd (1050.HK) is 4.70%.

	Range	Selected
Cost of equity	7.20% - 9.90%	8.55%
Tax rate	12.20% - 15.50%	13.85%
Cost of debt	4.00% - 5.40%	4.70%
WACC	6.2% - 8.5%	7.4%

WACC

1050.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.72	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	9.90%

Tax rate	12.20%	15.50%
Debt/Equity ratio	0.36	0.36
Cost of debt	4.00%	5.40%

After-tax WACC	6.2%	8.5%


Selected WACC	7.4%

1050.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 1050.HK:

cost_of_equity (8.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.72) + 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.