1433.HK WACC - Weighted Average Cost of Capital

The WACC of Cirtek Holdings Ltd (1433.HK) is 8.5%.

The Cost of Equity of Cirtek Holdings Ltd (1433.HK) is 10.85%.

The Cost of Debt of Cirtek Holdings Ltd (1433.HK) is 4.50%.

	Range	Selected
Cost of equity	9.30% - 12.40%	10.85%
Tax rate	30.20% - 31.60%	30.90%
Cost of debt	4.00% - 5.00%	4.50%
WACC	7.3% - 9.7%	8.5%

WACC

1433.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.08	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.40%

Tax rate	30.20%	31.60%
Debt/Equity ratio	0.44	0.44
Cost of debt	4.00%	5.00%

After-tax WACC	7.3%	9.7%


Selected WACC	8.5%

1433.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 1433.HK:

cost_of_equity (10.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.08) + 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.