1449.HK WACC - Weighted Average Cost of Capital
The WACC of Leader Education Ltd (1449.HK) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.7% | 10.05% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.7% - 11.4% | 8.05% |
| WACC | 4.2% - 9.2% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.93 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.7% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 8.12 | 8.12 |
| Cost of debt | 4.7% | 11.4% |
| After-tax WACC | 4.2% | 9.2% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1449.HK | Leader Education Ltd | 8.13 | 0.62 | 0.08 |
| 1525.HK | Shanghai Gench Education Group Ltd | 0.83 | 0.27 | 0.16 |
| 1593.HK | Chen Lin Education Group Holdings Ltd | 2.15 | 0.03 | 0.01 |
| 1598.HK | China 21st Century Education Group Ltd | 8.04 | 0.7 | 0.1 |
| 1758.HK | Bojun Education Company Ltd | 12.48 | -0.35 | -0.03 |
| 1851.HK | China Gingko Education Group Company Ltd | 0.71 | 0.25 | 0.16 |
| 1871.HK | China Oriented International Holdings Ltd | 0.41 | 0.44 | 0.33 |
| 1969.HK | China Chunlai Education Group Co Ltd | 0.49 | 0.19 | 0.14 |
| 2779.HK | China Xinhua Education Group Ltd | 0.69 | 0.81 | 0.52 |
| 600455.SS | ButOne Information Corporation XiAn | 0.27 | 0.94 | 0.78 |
| Low | High | |
| Unlevered beta | 0.12 | 0.16 |
| Relevered beta | 0.9 | 1.19 |
| Adjusted relevered beta | 0.93 | 1.13 |
1449.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 1449.HK:
cost_of_equity (10.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.93) + 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.