1233.HK WACC - Weighted Average Cost of Capital

The WACC of Times China Holdings Ltd (1233.HK) is 4.8%.

The Cost of Equity of Times China Holdings Ltd (1233.HK) is 36.60%.

The Cost of Debt of Times China Holdings Ltd (1233.HK) is 5.65%.

	Range	Selected
Cost of equity	25.10% - 48.10%	36.60%
Tax rate	11.40% - 23.70%	17.55%
Cost of debt	4.30% - 7.00%	5.65%
WACC	3.9% - 5.6%	4.8%

WACC

1233.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	3.72	6.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.10%	48.10%

Tax rate	11.40%	23.70%
Debt/Equity ratio	154.23	154.23
Cost of debt	4.30%	7.00%

After-tax WACC	3.9%	5.6%


Selected WACC	4.8%

1233.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 1233.HK:

cost_of_equity (36.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.72) + 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.