1415.HK WACC - Weighted Average Cost of Capital

The WACC of Cowell e Holdings Inc (1415.HK) is 11.7%.

The Cost of Equity of Cowell e Holdings Inc (1415.HK) is 12.35%.

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

	Range	Selected
Cost of equity	10.90% - 13.80%	12.35%
Tax rate	12.80% - 13.20%	13.00%
Cost of debt	4.00% - 10.50%	7.25%
WACC	10.2% - 13.3%	11.7%

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	1.35	1.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.80%

Tax rate	12.80%	13.20%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	10.50%

After-tax WACC	10.2%	13.3%


Selected WACC	11.7%

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 (12.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.35) + 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.