1303.HK WACC - Weighted Average Cost of Capital

The WACC of Huili Resources Group Ltd (1303.HK) is 11.1%.

The Cost of Equity of Huili Resources Group Ltd (1303.HK) is 11.95%.

The Cost of Debt of Huili Resources Group Ltd (1303.HK) is 9.55%.

	Range	Selected
Cost of equity	10.60% - 13.30%	11.95%
Tax rate	15.80% - 17.50%	16.65%
Cost of debt	4.00% - 15.10%	9.55%
WACC	9.0% - 13.1%	11.1%

WACC

1303.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.29	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.30%

Tax rate	15.80%	17.50%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.00%	15.10%

After-tax WACC	9.0%	13.1%


Selected WACC	11.1%

1303.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 1303.HK:

cost_of_equity (11.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.29) + 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.