1223.HK WACC - Weighted Average Cost of Capital

The WACC of Symphony Holdings Ltd (1223.HK) is 8.3%.

The Cost of Equity of Symphony Holdings Ltd (1223.HK) is 6.35%.

The Cost of Debt of Symphony Holdings Ltd (1223.HK) is 13.55%.

	Range	Selected
Cost of equity	5.20% - 7.50%	6.35%
Tax rate	2.30% - 4.10%	3.20%
Cost of debt	4.20% - 22.90%	13.55%
WACC	4.8% - 11.8%	8.3%

WACC

1223.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.38	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.50%

Tax rate	2.30%	4.10%
Debt/Equity ratio	0.42	0.42
Cost of debt	4.20%	22.90%

After-tax WACC	4.8%	11.8%


Selected WACC	8.3%

1223.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 1223.HK:

cost_of_equity (6.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.