138.HK
CCT Fortis Holdings Ltd
Price:  
0.07 
HKD
Volume:  
180,000
Hong Kong | Industrial Conglomerates

138.HK WACC - Weighted Average Cost of Capital

The WACC of CCT Fortis Holdings Ltd (138.HK) is 5.4%.

The Cost of Equity of CCT Fortis Holdings Ltd (138.HK) is 15.3%.
The Cost of Debt of CCT Fortis Holdings Ltd (138.HK) is 6%.

RangeSelected
Cost of equity6.8% - 23.8%15.3%
Tax rate22.1% - 22.3%22.2%
Cost of debt5.0% - 7.0%6%
WACC4.1% - 6.7%5.4%
WACC

138.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.662.85
Additional risk adjustments0.0%0.5%
Cost of equity6.8%23.8%
Tax rate22.1%22.3%
Debt/Equity ratio
14.0414.04
Cost of debt5.0%7.0%
After-tax WACC4.1%6.7%
Selected WACC5.4%

138.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 138.HK:

cost_of_equity (15.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.66) + 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.