1415.HK WACC - Weighted Average Cost of Capital

The WACC of Cowell e Holdings Inc (1415.HK) is 9.4%.

The Cost of Equity of Cowell e Holdings Inc (1415.HK) is 9.75%.

The Cost of Debt of Cowell e Holdings Inc (1415.HK) is 7.25%.

	Range	Selected
Cost of equity	8.00% - 11.50%	9.75%
Tax rate	13.30% - 15.00%	14.15%
Cost of debt	4.00% - 10.50%	7.25%
WACC	7.5% - 11.2%	9.4%

WACC

1415.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.86	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	11.50%

Tax rate	13.30%	15.00%
Debt/Equity ratio	0.12	0.12
Cost of debt	4.00%	10.50%

After-tax WACC	7.5%	11.2%


Selected WACC	9.4%

1415.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 1415.HK:

cost_of_equity (9.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.