1084.HK WACC - Weighted Average Cost of Capital

The WACC of Green Future Food Hydrocolloid Marine Science Co Ltd (1084.HK) is 6.1%.

The Cost of Equity of Green Future Food Hydrocolloid Marine Science Co Ltd (1084.HK) is 8.35%.

The Cost of Debt of Green Future Food Hydrocolloid Marine Science Co Ltd (1084.HK) is 4.90%.

	Range	Selected
Cost of equity	6.20% - 10.50%	8.35%
Tax rate	24.00% - 24.40%	24.20%
Cost of debt	4.70% - 5.10%	4.90%
WACC	4.9% - 7.3%	6.1%

WACC

1084.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.56	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	10.50%

Tax rate	24.00%	24.40%
Debt/Equity ratio	0.92	0.92
Cost of debt	4.70%	5.10%

After-tax WACC	4.9%	7.3%


Selected WACC	6.1%

1084.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 1084.HK:

cost_of_equity (8.35%) = 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.