1233.HK WACC - Weighted Average Cost of Capital

The WACC of Times China Holdings Ltd (1233.HK) is 5.6%.

The Cost of Equity of Times China Holdings Ltd (1233.HK) is 34.90%.

The Cost of Debt of Times China Holdings Ltd (1233.HK) is 6.60%.

	Range	Selected
Cost of equity	23.50% - 46.30%	34.90%
Tax rate	11.40% - 23.70%	17.55%
Cost of debt	6.20% - 7.00%	6.60%
WACC	5.6% - 5.6%	5.6%

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	3.45	6.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.50%	46.30%

Tax rate	11.40%	23.70%
Debt/Equity ratio	141.75	141.75
Cost of debt	6.20%	7.00%

After-tax WACC	5.6%	5.6%


Selected WACC	5.6%

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 (34.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.45) + 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.