1082.HK WACC - Weighted Average Cost of Capital

The WACC of Hong Kong Education Intl Investments Ltd (1082.HK) is 6.0%.

The Cost of Equity of Hong Kong Education Intl Investments Ltd (1082.HK) is 5.90%.

The Cost of Debt of Hong Kong Education Intl Investments Ltd (1082.HK) is 11.15%.

	Range	Selected
Cost of equity	5.10% - 6.70%	5.90%
Tax rate	1.00% - 3.10%	2.05%
Cost of debt	7.00% - 15.30%	11.15%
WACC	5.2% - 6.9%	6.0%

WACC

1082.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.29	0.33

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.10%	6.70%

Tax rate	1.00%	3.10%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.00%	15.30%

After-tax WACC	5.2%	6.9%


Selected WACC	6.0%

1082.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 1082.HK:

cost_of_equity (5.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.29) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.