1069.HK WACC - Weighted Average Cost of Capital

The WACC of China Bozza Development Holdings Ltd (1069.HK) is 8.1%.

The Cost of Equity of China Bozza Development Holdings Ltd (1069.HK) is 13.65%.

The Cost of Debt of China Bozza Development Holdings Ltd (1069.HK) is 5.00%.

	Range	Selected
Cost of equity	11.70% - 15.60%	13.65%
Tax rate	-% - 0.50%	0.25%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.4% - 8.8%	8.1%

WACC

1069.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.48	1.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	15.60%

Tax rate	-%	0.50%
Debt/Equity ratio	1.79	1.79
Cost of debt	5.00%	5.00%

After-tax WACC	7.4%	8.8%


Selected WACC	8.1%

1069.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 1069.HK:

cost_of_equity (13.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.48) + 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.