1470.HK WACC - Weighted Average Cost of Capital

The WACC of Prosper One International Holdings Company Ltd (1470.HK) is 12.3%.

The Cost of Equity of Prosper One International Holdings Company Ltd (1470.HK) is 10.15%.

The Cost of Debt of Prosper One International Holdings Company Ltd (1470.HK) is 18.55%.

	Range	Selected
Cost of equity	8.00% - 12.30%	10.15%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.00% - 33.10%	18.55%
WACC	5.5% - 19.0%	12.3%

WACC

1470.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.85	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	12.30%

Tax rate	22.10%	22.30%
Debt/Equity ratio	1	1
Cost of debt	4.00%	33.10%

After-tax WACC	5.5%	19.0%


Selected WACC	12.3%

1470.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 1470.HK:

cost_of_equity (10.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.85) + 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.