1443.HK WACC - Weighted Average Cost of Capital

The WACC of Fulum Group Holdings Ltd (1443.HK) is 5.9%.

The Cost of Equity of Fulum Group Holdings Ltd (1443.HK) is 10.85%.

The Cost of Debt of Fulum Group Holdings Ltd (1443.HK) is 5.50%.

	Range	Selected
Cost of equity	8.10% - 13.60%	10.85%
Tax rate	2.60% - 3.40%	3.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 7.5%	5.9%

WACC

1443.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.87	1.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	13.60%

Tax rate	2.60%	3.40%
Debt/Equity ratio	8.56	8.56
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	7.5%


Selected WACC	5.9%

1443.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 1443.HK:

cost_of_equity (10.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.