1245.HK WACC - Weighted Average Cost of Capital

The WACC of Niraku GC Holdings Inc (1245.HK) is 5.9%.

The Cost of Equity of Niraku GC Holdings Inc (1245.HK) is 31.15%.

The Cost of Debt of Niraku GC Holdings Inc (1245.HK) is 4.30%.

	Range	Selected
Cost of equity	22.00% - 40.30%	31.15%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.00% - 4.60%	4.30%
WACC	4.9% - 7.0%	5.9%

WACC

1245.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	3.2	5.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.00%	40.30%

Tax rate	22.10%	22.30%
Debt/Equity ratio	9.74	9.74
Cost of debt	4.00%	4.60%

After-tax WACC	4.9%	7.0%


Selected WACC	5.9%

1245.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 1245.HK:

cost_of_equity (31.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.2) + 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.