1337.HK WACC - Weighted Average Cost of Capital

The WACC of Razer Inc (1337.HK) is 10.5%.

The Cost of Equity of Razer Inc (1337.HK) is 9.05%.

The Cost of Debt of Razer Inc (1337.HK) is 174.85%.

	Range	Selected
Cost of equity	7.50% - 10.60%	9.05%
Tax rate	8.50% - 12.40%	10.45%
Cost of debt	4.00% - 345.70%	174.85%
WACC	7.4% - 13.5%	10.5%

WACC

1337.HK WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.3%	6.3%
Adjusted beta	0.83	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.60%

Tax rate	8.50%	12.40%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	345.70%

After-tax WACC	7.4%	13.5%


Selected WACC	10.5%

1337.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 1337.HK:

cost_of_equity (9.05%) = risk_free_rate (3.25%) + equity_risk_premium (5.80%) * adjusted_beta (0.83) + 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.