1361.HK WACC - Weighted Average Cost of Capital

The WACC of 361 Degrees International Ltd (1361.HK) is 10.1%.

The Cost of Equity of 361 Degrees International Ltd (1361.HK) is 10.30%.

The Cost of Debt of 361 Degrees International Ltd (1361.HK) is 4.25%.

	Range	Selected
Cost of equity	8.70% - 11.90%	10.30%
Tax rate	23.70% - 25.80%	24.75%
Cost of debt	4.00% - 4.50%	4.25%
WACC	8.5% - 11.6%	10.1%

WACC

1361.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.97	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.90%

Tax rate	23.70%	25.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	4.50%

After-tax WACC	8.5%	11.6%


Selected WACC	10.1%

1361.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 1361.HK:

cost_of_equity (10.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.97) + 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.