1300.HK WACC - Weighted Average Cost of Capital

The WACC of Trigiant Group Ltd (1300.HK) is 12.7%.

The Cost of Equity of Trigiant Group Ltd (1300.HK) is 22.90%.

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

	Range	Selected
Cost of equity	19.30% - 26.50%	22.90%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.00% - 19.90%	11.95%
WACC	7.2% - 18.2%	12.7%

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	2.75	3.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.30%	26.50%

Tax rate	22.10%	22.30%
Debt/Equity ratio	2.95	2.95
Cost of debt	4.00%	19.90%

After-tax WACC	7.2%	18.2%


Selected WACC	12.7%

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 (22.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.75) + 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.