1300.HK WACC - Weighted Average Cost of Capital

The WACC of Trigiant Group Ltd (1300.HK) is 13.2%.

The Cost of Equity of Trigiant Group Ltd (1300.HK) is 24.70%.

The Cost of Debt of Trigiant Group Ltd (1300.HK) is 11.95%.

	Range	Selected
Cost of equity	21.70% - 27.70%	24.70%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.00% - 19.90%	11.95%
WACC	7.9% - 18.6%	13.2%

WACC

1300.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	3.15	3.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.70%	27.70%

Tax rate	22.10%	22.30%
Debt/Equity ratio	2.89	2.89
Cost of debt	4.00%	19.90%

After-tax WACC	7.9%	18.6%


Selected WACC	13.2%

1300.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 1300.HK:

cost_of_equity (24.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.15) + 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.