1315.HK WACC - Weighted Average Cost of Capital

The WACC of Vision Fame International Holding Ltd (1315.HK) is 7.5%.

The Cost of Equity of Vision Fame International Holding Ltd (1315.HK) is 10.65%.

The Cost of Debt of Vision Fame International Holding Ltd (1315.HK) is 9.30%.

	Range	Selected
Cost of equity	8.20% - 13.10%	10.65%
Tax rate	25.90% - 38.20%	32.05%
Cost of debt	8.10% - 10.50%	9.30%
WACC	6.7% - 8.4%	7.5%

WACC

1315.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.89	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	13.10%

Tax rate	25.90%	38.20%
Debt/Equity ratio	2.38	2.38
Cost of debt	8.10%	10.50%

After-tax WACC	6.7%	8.4%


Selected WACC	7.5%

1315.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 1315.HK:

cost_of_equity (10.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.89) + 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.